Cano Health, Inc. Announces Pricing of Private Offering of $300 Million of Senior Notes

Rhea-AI Summary

Cano Health, Inc. (NYSE: CANO) announced the pricing of a private offering of $300 million in senior notes with a 6.250% interest rate due on October 1, 2028. The offering aims to close on September 30, 2021, pending customary closing conditions. Proceeds will be used to fully repay a $250 million bridge term loan and for general corporate purposes. This offering is made under Rule 144A and Regulation S, and the notes will not be registered under the Securities Act.

Positive

• Proceeds will be used to pay off a $250 million bridge term loan, reducing debt.
• The offering may improve Cano Health's financial stability by managing existing debt.

Negative

• The issuance of new senior notes may lead to potential shareholder dilution.
• Dependence on debt financing may pose risks amid changing market conditions.

MIAMI, Sept. 23, 2021 /PRNewswire/ -- Cano Health, Inc. ("Cano Health") (NYSE: CANO) today announced that its subsidiary, Cano Health, LLC (the "Issuer"), priced its offering of $300.0 million aggregate principal amount of 6.250% senior notes due 2028 (the "Notes"). The Notes will bear interest at 6.250% per annum and mature on October 1, 2028. The Notes will be fully and unconditionally guaranteed on an unsecured senior basis by Primary Care (ITC) Intermediate Holdings, LLC, the Issuer's direct parent company, and each of the Issuer's existing and future, direct and indirect wholly-owned domestic subsidiaries that is a borrower or guarantor under the Issuer's senior secured credit facility. The offering is expected to close on September 30, 2021, subject to customary closing conditions.

The Issuer intends to use the net proceeds from the offering to repay in full the $250.0 million unsecured bridge term loan outstanding under its bridge loan agreement, to pay related fees and expenses, and the remainder for general corporate purposes.

The offering was made solely by means of a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes have not been and are not expected to be registered under the Securities Act or under any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful.

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 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).

Forward-Looking Statements
The release above contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including those regarding the expected timing for the closing of the offering of the Notes and the anticipated use of proceeds therefrom. There can be no assurance that the offering will be consummated. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including, among others, the availability of debt and equity financing; Cano Health's ability to refinance its outstanding indebtedness; and changes in market or industry conditions affecting Cano Health's financial condition or results of operations.  These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are described in Cano Health's filings with the Securities and Exchange Commission. Although Cano Health believes that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by Cano Health, or any other person, that such forward-looking statements will be achieved.  The forward-looking statements speak only as of the date of this release and Cano Health undertakes no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent otherwise required by law.

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

Media Relations – Local (FL)
Barbara Ferreiro
Cano Health
(305) 790-6731
barbara.ferreiro@canohealth.com

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SOURCE Cano Health, Inc.

FAQ

What is the purpose of Cano Health's $300 million senior notes offering?

The proceeds will be used to repay a $250 million bridge term loan and for general corporate purposes.

When does Cano Health expect to close the senior notes offering?

Cano Health expects to close the offering on September 30, 2021.

What is the interest rate on the senior notes issued by Cano Health?

The senior notes will bear an interest rate of 6.250% per annum.

Are the senior notes issued by Cano Health registered with the SEC?

No, the notes have not been registered under the Securities Act and may not be offered in the U.S.

What risks are associated with Cano Health's senior notes offering?

Potential risks include shareholder dilution and reliance on debt financing in a changing market.