Performant Financial Corporation, primarily operating as Performant Healthcare Solutions, a provider of technology-enabled payment integrity, eligibility and related analytics services, completed a refinancing of its existing credit facility with a new credit facility with Wells Fargo that has a $25 million revolving loan commitment, subject to customary asset-based loan borrowing base limitations. The company may also increase commitments under the new credit facility by an additional $10 million, subject to obtaining commitments from lenders and subject to certain other conditions.
“We are excited about this new commitment from Well Fargo and the anticipated savings of up to 100 basis points in interest expense, combined with a smaller debt footprint,” Simeon Kohl, CEO at Performant, said. “We see significant growth potential as we implemented many new commercial clients in the last 24 months, launched the CMS Region 2 Recovery Audit Contract, the Health and Human Services Office of Inspector General contract and are preparing to implement the New York State Medicaid Recovery Audit contract. We expect this new debt structure to provide us with working capital liquidity to support our long-term vision, including the ability to pursue meaningful commercial and government healthcare payment integrity opportunities. We are excited about the direction of the business, our many opportunities and our new partnership with Wells Fargo.”
“The opportunity to refinance our debt structure has been a key piece of our 2023 financial accomplishments” Rohit Ramchandani, CFO at Performant, said. “This new credit agreement will help us continue to manage our business with long-term growth in mind and to further penetrate the significant opportunity we have in the healthcare payment integrity space.”
