Cano Health enters $150 million senior secured term loan due 2027

By Marisa Wong

Los Angeles, Feb. 27 – Cano Health, Inc., through its subsidiaries, Cano Health, LLC and Primary Care (ITC) Intermediate Holdings, LLC, entered into a credit agreement on Feb. 24 for a $150 million senior secured term loan, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is administrative agent, lead arranger and bookrunner.

The term loan bears interest at a rate equal to (i) on or prior to the date that is the second anniversary of the closing date, 14% per annum, payable quarterly either in cash or in kind; and (ii) after that, 13% per annum, payable quarterly in cash.

The term loan will mature on Nov. 23, 2027, the same maturity date as the company’s existing term loan under the credit agreement dated Nov. 23, 2020 with Credit Suisse AG, Cayman Islands Branch as administrative agent.

The new term loan will not amortize.

The term loan may be prepaid, subject to application of a prepayment premium.

The credit agreement contains a financial covenant requiring the borrower to maintain a first-lien net leverage ratio not to exceed 5.80 to 1.00 on the last day of any four consecutive fiscal quarter period, with the first testing date on March 31.

The full amount was funded on the closing of the facility.

The company will use the proceeds to pay the transaction fees and expenses incurred in connection with entering into the loan, with the balance being available for working capital needs and other general corporate purposes, including the repayment of amounts outstanding under the existing revolver under the Credit Suisse credit agreement.

Cano Health is a Miami-based health care services provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.