Refinancing plan unveiled by MultiPlan to strengthen its capital structure
MultiPlan Corporation (NYSE: MPLN), a prominent provider of technology and data solutions dedicated to cost management, quality improvement, and transparency in healthcare, has announced a comprehensive refinancing initiative. This refinancing is designed to extend the maturities across its entire debt capital structure, supporting the company’s long-term strategy.
Refinancing Details and Vision 2030 Support
As part of the refinancing process, MultiPlan has entered into a Transaction Support Agreement with key stakeholders holding approximately 78% of its outstanding debt. This agreement enables the company to restructure its capital and continue investing in its Vision 2030 transformation plan, focusing on data-driven solutions and technology. The refinancing is crucial to optimizing the company’s debt maturity profile, ensuring both operational efficiency and long-term sustainability.
“Our primary goal is to drive organic growth at MultiPlan, and this refinancing transaction plays a critical role in extending our debt maturities and optimizing our capital structure for long-term growth,” said Travis Dalton, Chief Executive Officer of MultiPlan. “We are extremely grateful for the strong support from our investors, who share our Vision 2030 and helped make this refinancing possible. This initiative is a key step toward transforming MultiPlan into a technology-driven company that improves cost management, quality, and transparency in healthcare.”
Key Terms of the Refinancing Transaction
The refinancing transaction is structured as a series of agreements that will position MultiPlan for sustained growth while enhancing capital efficiency. Key aspects of the refinancing include:
- Termination of Existing Revolving Credit Commitments: As part of the refinancing, MultiPlan will terminate its existing revolving credit commitments under its First Lien Credit Agreement dated August 24, 2021. The company will replace these commitments with new first-lien revolving credit commitments totaling $350 million. This new arrangement will extend the maturity date from August 24, 2026, to December 31, 2029.
- Exchange of Existing Term Loans: MultiPlan will offer to exchange its existing term loans due in 2028 for a combination of new “first-out” first lien term loans and “second-out” first lien term loans, the latter of which will mature in 2030. This refinancing will allow the company to extend loan maturities while securing favorable terms for long-term financial stability.
- Exchange of Existing Senior Secured and Unsecured Notes: MultiPlan will offer to exchange its existing 5.50% Senior Secured Notes due 2028, 5.750% Senior Unsecured Notes due 2028, and 6.00%/7.00% Convertible Senior PIK Toggle Notes due 2027 for new first lien term loans and notes with various maturities. This refinancing strategy will simplify the company’s capital structure and reduce its debt load.
- Consent Solicitation: MultiPlan will also conduct a consent solicitation aimed at eliminating most covenants and events of default associated with its existing notes. This will also release collateral securing the company’s current debt, offering greater flexibility and operational efficiency.
- Execution of Definitive Documents: MultiPlan is committed to negotiating and executing the necessary definitive documents in accordance with the terms outlined in the Transaction Support Agreement.
These refinanced terms will restructure MultiPlan’s debt, providing the company with the necessary financial flexibility to support its Vision 2030 transformation, which centers on innovative, data-driven cost management solutions in healthcare.
Long-Term Growth and Healthcare Impact
The refinancing will not only strengthen MultiPlan’s capital structure but will also provide the financial flexibility required to invest in cutting-edge technologies, data analytics, and healthcare solutions. By doing so, MultiPlan is positioned to lower healthcare costs and improve patient outcomes. The company’s mission to promote transparency, fairness, and affordability in healthcare remains a central focus of its operations.
With over 700 healthcare payors, 100,000 employers, 60 million consumers, and 1.4 million contracted providers, MultiPlan leverages advanced technology and data analytics to offer tailored healthcare solutions that create significant value in the U.S. healthcare system.
About MultiPlan
MultiPlan is a leading provider of cost management and data solutions, dedicated to improving transparency, fairness, and affordability in the U.S. healthcare system. The company focuses on identifying medical savings, lowering out-of-pocket costs, and eliminating balance billing. Through its network-based solutions and data-driven services, MultiPlan aims to drive sustainable value for its clients and consumers, enhancing the overall efficiency of the healthcare system..
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