Cano Health Announces Repricing of Term Loan

Rhea-AI Summary

Cano Health, LLC, a subsidiary of Cano Health, Inc. (NYSE: CANO), has successfully repriced its senior secured Term Loan B, totaling $644.4 million, which matures on November 23, 2027. The repricing reduced the interest rate by 0.75%, now set at Term SOFR plus a 4.00% credit spread adjustment, instead of the previous LIBOR plus 4.50%. This financial maneuver aims to enhance the company's capital management and support its ongoing operations across multiple states, including Florida and Texas.

Positive

• Repricing of senior secured Term Loan B reduces interest by 0.75%.
• New interest rate set at Term SOFR plus 4.00%, improving financial flexibility.

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• None.

MIAMI, Jan. 14, 2022 /PRNewswire/ -- Cano Health, Inc. (NYSE: CANO) announced today that its wholly-owned subsidiary, Cano Health, LLC ("Cano Health"), completed a repricing of its approximately $644.4 million senior secured Term Loan B maturing November 23, 2027 (the "Term Loan").

The Term Loan will bear interest using a forward looking-term rate based on the secured overnight financing rate ("Term SOFR"), replacing LIBOR as the reference rate.  Based on current Term SOFR rates, the overall pricing of the Term Loan was reduced by 0.75% to the sum of (i) Term SOFR plus a credit spread adjustment ("CSA") and (ii) 4.00%, with a Term SOFR plus CSA floor of 0.50%.  Previously, the Term Loan was priced at LIBOR plus 4.50% with a LIBOR floor of 0.75%.

About Cano Health

Cano Health operates value-based primary care medical centers and supports affiliated medical practices that specialize in primary care for seniors in Florida, Texas, Nevada, New York, New Jersey, New Mexico, California, Illinois, and Puerto Rico, with additional markets in development. As part of its care coordination strategy, Cano Health provides sophisticated, high-touch population health management programs including telehealth, prescription home delivery, wellness programs, transition of care, and high-risk and complex care management.

Cano Health's personalized patient care and proactive approach to wellness and preventive care sets it apart from competitors. Cano Health has consistently improved clinical outcomes while reducing costs, affording patients the opportunity to lead longer and healthier lives. Cano Health serves a predominantly minority population (80% of its patients are Latino or African American) and low-income population (50% of its members are dual eligible for Medicare and Medicaid). For more information visit www.canohealth.com or www.canohealth.com/investors/.

Investor Relations Contacts:
Alan Oshiki or Sydney Isaacs
Abernathy MacGregor
(212) 371-5999 / (713) 817-9346
aho@abmac.com / sri@abmac.com

Media Relations Contact:
Patricia Graue
Brunswick Group
(212) 333-3810
canohealth@brunswickgroup.com

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SOURCE Cano Health, Inc.

FAQ

What is the latest news about Cano Health, Inc. (CANO)?

Cano Health announced the successful repricing of its $644.4 million Term Loan B, reducing the interest rate by 0.75%.

When does Cano Health's Term Loan B mature?

Cano Health's Term Loan B is set to mature on November 23, 2027.

How has Cano Health's Term Loan interest changed?

The interest on Cano Health's Term Loan has been reduced to Term SOFR plus a 4.00% credit spread adjustment.

What states does Cano Health operate in?

Cano Health operates in states including Florida, Texas, Nevada, New York, New Jersey, New Mexico, California, Illinois, and Puerto Rico.