Performant Financial Corporation Announces Completion of Debt Refinancing

Rhea-AI Summary

Performant Financial Corporation (Nasdaq: PFMT) has completed a refinancing of its existing credit facility with a new credit facility with Wells Fargo. The new facility has a $25 million revolving loan commitment, with the potential to increase by an additional $10 million. Performant is a leading provider of technology-enabled payment integrity, eligibility, and analytics services.

PLANTATION, Fla.--(BUSINESS WIRE)-- Performant Financial Corporation (Nasdaq: PFMT) (Performant), primarily operating as Performant Healthcare Solutions, a leading provider of technology-enabled payment integrity, eligibility, and related analytics services, announced today the completion of a refinancing of its existing credit facility with a new credit facility with Wells Fargo that has a $25 million revolving loan commitment, subject to customary asset-based loan borrowing base limitations. The Company may also increase commitments under the new credit facility by an additional $10 million, subject to obtaining commitments from lenders and subject to certain other conditions.

“We are excited about this new commitment from Well Fargo and the anticipated savings of up to 100 basis points in interest expense, combined with a smaller debt footprint,” said Simeon Kohl, CEO at Performant. “We see significant growth potential as we implemented many new commercial clients in the last 24 months, launched the CMS Region 2 Recovery Audit Contract, the Health and Human Services Office of Inspector General contract and are preparing to implement the New York State Medicaid Recovery Audit contract. We expect this new debt structure to provide us with working capital liquidity to support our long-term vision, including the ability to pursue meaningful commercial and government healthcare payment integrity opportunities. We are excited about the direction of the business, our many opportunities and our new partnership with Wells Fargo.”

“The opportunity to refinance our debt structure has been a key piece of our 2023 financial accomplishments” said Rohit Ramchandani, CFO at Performant. “This new credit agreement will help us continue to manage our business with long-term growth in mind and to further penetrate the significant opportunity we have in the healthcare payment integrity space.”

ABOUT PERFORMANT HEALTHCARE SOLUTIONS

Performant helps commercial healthcare and government payers enhance revenue and contain costs by identifying, preventing, and recovering waste, improper payments, and defaulted assets. Performant is a leading provider of these services in several markets, including Medicare, Medicaid, and commercial healthcare. Performant has been providing healthcare recovery audit services for more than a decade and works with leading national payers, regional payers, and Blues plans.

Powered by a proprietary analytics platform and workflow technology, Performant also provides professional services related to the recovery effort, including advanced reporting capabilities, support services, customer care, and stakeholder training programs meant to mitigate future instances of improper payments. Founded in 1976, Performant is headquartered in Plantation, Florida.

To learn more about Performant, please visit https://www.performantcorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231101984585/en/

Jon Bozzuto, Investor Relations

Performant Financial Corporation

(925) 960-4988

investors@performantcorp.com

Source: Performant Financial Corporation

FAQ

What is the company name involved in the refinancing?

The company involved in the refinancing is Performant Financial Corporation (Nasdaq: PFMT).

What services does Performant provide?

Performant is a leading provider of technology-enabled payment integrity, eligibility, and analytics services.

Who is the new credit facility provider?

The new credit facility is provided by Wells Fargo.

What is the loan commitment of the new credit facility?

The new credit facility has a $25 million revolving loan commitment.

Can the commitments under the new credit facility be increased?

Yes, the commitments under the new credit facility can be increased by an additional $10 million, subject to obtaining commitments from lenders and certain conditions.