By Lisa Kerner
Charlotte, N.C., Oct. 24 – Providence Service Corp. issued a $65.5 million 14% subordinated note to Coliseum Capital Management, LLC and some of its affiliates on Thursday, according to an 8-K filing with the Securities and Exchange Commission.
The note matures on Sept. 30, 2018.
Providence used the proceeds to finance, in part, the acquisition of the parent company of Community Care Health Network, Inc., which does business as Matrix Medical Group.
The note will be paid off with the proceeds from a rights offering, and Providence will otherwise not have the right to optionally prepay the note.
Interest from the issuance date up to but excluding the 120th day after the issuance date was paid in cash in the amount of $3,014,795 on the issuance of the note, the filing stated.
Interest thereafter will be payable by increasing the principal amount as pay-in-kind interest and will be paid quarterly, in arrears.
As of Aug. 18, Coliseum held about 15% of Providence’s outstanding common stock and is Providence’s largest shareholder. Christopher Shackelton, who is a member of Providence’s board of directors, is also a managing partner at Coliseum.
Providence Service is a Tucson, Ariz.-based provider of human social services.
| Issuer: | Providence Service Corp.
|
| Issue: | Subordinated note
|
| Amount: | $65.5 million
|
| Coupon: | 14%
|
| Maturity: | Sept. 30, 2018
|
| Purchaser: | Coliseum Capital Management, LLC and affiliates
|
| Settlement date: | Oct. 23
|
| Distribution: | Private placement
|
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