Signify Health Announces Completion of Refinancing

Rhea-AI Summary

Signify Health, Inc. (NYSE: SGFY) announced the successful refinancing of its credit facilities, reducing total debt from $411 million to $350 million. The new agreement includes a $350 million senior secured first lien term loan due in June 2028 and a $185 million revolving credit facility due in June 2026. This refinancing is expected to lower annual interest expenses by approximately $10 million, enhance financial flexibility, and support future growth initiatives.

Positive

• Total debt reduced from $411 million to $350 million.
• Annualized interest expense lowered by approximately $10 million.
• Increased financial flexibility with less restrictive covenants.

Negative

• None.

Signify Health, Inc. (NYSE: SGFY), a leading healthcare platform that leverages advanced analytics, technology and nationwide healthcare networks to create and power value-based payment programs, today announced the successful completion of a refinancing of its first lien term loans and revolving credit facility.

Signify Health, LLC and certain other subsidiaries of the Company entered into a new credit agreement comprised of a $350 million senior secured first lien term loan due in June 2028 and a $185 million senior secured revolving credit facility due in June 2026. The proceeds from the new term loan, and cash on hand, are being used to repay the Company’s existing loans. After the refinancing, total debt outstanding is reduced to $350 million from $411 million at March 31, 2021. Relative to the refinanced credit facility, the new credit facility significantly reduces borrowing costs while increasing operating flexibility through less restrictive financial covenants and access to higher levels of revolver borrowings.

"We are pleased with the successful refinancing of our credit facilities, which reduces our annualized interest expense by approximately $10 million in the current interest rate environment and increases our overall financial flexibility with respect to covenants and liquidity,” said Steve Senneff, Chief Financial Officer and President of Signify Health. “This refinancing positions Signify to continue to invest for future growth and drive increasing value to customers, partners and shareholders."

Barclays Bank PLC is acting as administrative agent and collateral agent. Barclays Bank PLC, JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, BofA Securities Inc., UBS Securities LLC and Deutsche Bank Securities Inc. acted as joint lead arrangers and joint bookrunners.

About Signify Health

Signify Health is a leading healthcare platform that leverages advanced analytics, technology, and nationwide healthcare provider networks to create and power value-based payment programs. Our mission is to transform how care is paid for and delivered so that people can enjoy more healthy, happy days at home. Our solutions support value-based payment programs by aligning financial incentives around outcomes, providing tools to health plans and healthcare organizations designed to assess and manage risk and identify actionable opportunities for improved patient outcomes, coordination and cost-savings. Through our platform, we coordinate what we believe is a holistic suite of clinical, social, and behavioral services to address an individual’s healthcare needs and prevent adverse events that drive excess cost, all while shifting services towards the home.

Forward Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical fact included in this press release are forward-looking statements. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include: the COVID-19 pandemic and whether the pandemic will continue to subside in 2021; our failure to achieve or maintain profitability; our failure to successfully execute on our growth initiatives, business strategies, or operating plans, including growth in our Commercial Episodes business; risks associated with acquiring other businesses including our ability to effectively integrate the operations and technologies of the acquired business; risks associated with an increase in our indebtedness; our ability to invest in future growth and drive increasing value to our customers, partners and shareholders; and the other risk factors described under “Risk Factors” in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which are available free of charge on the SEC's website at: www.sec.gov.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. In addition, all forward-looking statements speak only as of the date of this press release. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise other than as required under the federal securities laws.

Source: Signify Health

View source version on businesswire.com: https://www.businesswire.com/news/home/20210622006047/en/

FAQ

What is the significance of Signify Health's debt refinancing?

The refinancing reduces Signify Health's total debt from $411 million to $350 million, lowering annual interest expenses by approximately $10 million.

What are the terms of the new credit agreement for SGFY?

The new agreement includes a $350 million first lien term loan due in June 2028 and a $185 million revolving credit facility due in June 2026.

How does the refinancing impact Signify Health's financial flexibility?

It enhances financial flexibility by reducing borrowing costs and lessening the restrictions of financial covenants.

When is the new term loan due for Signify Health?

The new term loan is due in June 2028.

What is the expected benefit of the refinancing for SGFY shareholders?

It is expected to provide more liquidity and support future growth, potentially increasing value for shareholders.