ATI Physical Therapy, an outpatient physical therapy provider in the United States, completed its previously disclosed transaction support agreement to increase the company’s liquidity and financial flexibility.
“We are pleased to complete this important step toward strengthening our balance sheet, a key component of ATI’s continued transformation,” Sharon Vitti, CEO of ATI, said. “The TSA reflects months’ of constructive engagement with our largest shareholders, underscores their confidence in the significant value creation opportunities ahead for ATI and we believe fuels our return to growth.”
As announced on March 6, 2023, the transactions completed in the TSA will enable ATI to obtain a $25 million delayed draw facility in the form of new second lien PIK exchangeable notes and exchange $100 million of first lien term loan into new second lien PIK exchangeable notes, among other things.
“Completing the TSA transactions provides us the flexibility we need to continue executing on our strategic initiatives – focused on our pipeline, provider base and provider productivity – as we deliver value to our patients, shareholders and other stakeholders,” Vitti said. “We are pleased with our solid performance through Q2 to date.”
“Our continued support of ATI is further testament to our belief in ATI’s growth potential and our confidence in Sharon and her new leadership team’s ability to deliver on their strategic plan,” Andrew Shannahan, partner at Knighthead Capital Management, said.
Knighthead Capital Management is the investment advisor to ATI’s largest shareholders.
