The Oncology Institute Announces Amendment to Facility Agreement and Debt Paydown
The Oncology Institute (NASDAQ: TOI) has announced key financial developments, including an amendment to its facility agreement with Deerfield Management Company and a partial debt reduction. The amendment removes the $40 million minimum cash covenant and lifts restrictions on equity offerings. TOI has paid down approximately $20 million of senior secured convertible notes and related interest.
The company has also reported significant progress in its growth initiatives, having secured three new capitation agreements in 2025, adding roughly 80,000 lives across California, Nevada, and Florida markets. Notably, Florida operations now manage over 200,000 lives under value-based agreements, including more than 50,000 under Medicare Advantage.
L'Istituto di Oncologia (NASDAQ: TOI) ha annunciato importanti sviluppi finanziari, tra cui una modifica dell'accordo di finanziamento con Deerfield Management Company e una riduzione parziale del debito. La modifica elimina il vincolo di liquidità minima di 40 milioni di dollari e solleva le restrizioni sulle offerte di capitale. TOI ha rimborsato circa 20 milioni di dollari di note convertibili senior garantite e relativi interessi.
L'azienda ha anche riportato progressi significativi nelle sue iniziative di crescita, avendo ottenuto tre nuovi accordi di capitation nel 2025, aggiungendo circa 80.000 vite nei mercati della California, del Nevada e della Florida. In particolare, le operazioni in Florida gestiscono ora oltre 200.000 vite sotto accordi basati sul valore, inclusi più di 50.000 sotto Medicare Advantage.
El Instituto de Oncología (NASDAQ: TOI) ha anunciado desarrollos financieros clave, incluyendo una enmienda a su acuerdo de financiamiento con Deerfield Management Company y una reducción parcial de la deuda. La enmienda elimina el convenio de efectivo mínimo de 40 millones de dólares y levanta las restricciones sobre las ofertas de capital. TOI ha pagado aproximadamente 20 millones de dólares de notas convertibles senior garantizadas y los intereses relacionados.
La compañía también ha informado de un progreso significativo en sus iniciativas de crecimiento, habiendo asegurado tres nuevos acuerdos de capitación en 2025, añadiendo aproximadamente 80,000 vidas en los mercados de California, Nevada y Florida. Notablemente, las operaciones en Florida ahora gestionan más de 200,000 vidas bajo acuerdos basados en el valor, incluyendo más de 50,000 bajo Medicare Advantage.
온콜로지 연구소 (NASDAQ: TOI)가 주요 재무 개발 사항을 발표했습니다. 여기에는 Deerfield Management Company와의 시설 계약 수정 및 부분적인 부채 감소가 포함됩니다. 이 수정안은 4천만 달러의 최소 현금 약정을 제거하고 주식 제공에 대한 제한을 해제합니다. TOI는 약 2천만 달러의 고급 담보 전환 사채와 관련 이자를 상환했습니다.
회사는 또한 2025년에 세 개의 새로운 캡티네이션 계약을 확보하여 캘리포니아, 네바다, 플로리다 시장에서 약 80,000명의 생명을 추가하는 등 성장 이니셔티브에서 상당한 진전을 보고했습니다. 특히, 플로리다의 운영은 현재 가치 기반 계약 하에 200,000명 이상의 생명을 관리하고 있으며, 그 중 50,000명 이상은 Medicare Advantage에 해당합니다.
L'Institut d'Oncologie (NASDAQ: TOI) a annoncé des développements financiers clés, y compris un amendement à son accord de financement avec Deerfield Management Company et une réduction partielle de la dette. L'amendement supprime la clause de liquidité minimale de 40 millions de dollars et lève les restrictions sur les offres de capitaux. TOI a remboursé environ 20 millions de dollars de billets convertibles senior garantis et les intérêts associés.
La société a également signalé des progrès significatifs dans ses initiatives de croissance, ayant sécurisé trois nouveaux accords de capitation en 2025, ajoutant environ 80 000 vies sur les marchés de Californie, du Nevada et de Floride. Notamment, les opérations en Floride gèrent désormais plus de 200 000 vies dans le cadre d'accords basés sur la valeur, y compris plus de 50 000 sous Medicare Advantage.
Das Onkologie-Institut (NASDAQ: TOI) hat wichtige finanzielle Entwicklungen angekündigt, darunter eine Änderung des Kreditvertrags mit Deerfield Management Company und eine teilweise Schuldenreduzierung. Die Änderung hebt die Mindestliquiditätsklausel von 40 Millionen Dollar auf und beseitigt die Einschränkungen für Eigenkapitalangebote. TOI hat etwa 20 Millionen Dollar an vorrangigen gesicherten wandelbaren Anleihen und den dazugehörigen Zinsen zurückgezahlt.
Das Unternehmen berichtete auch von erheblichen Fortschritten bei seinen Wachstumsinitiativen, nachdem es drei neue Kapitationsverträge im Jahr 2025 gesichert hat, wodurch ungefähr 80.000 Leben in den Märkten von Kalifornien, Nevada und Florida hinzugefügt wurden. Besonders bemerkenswert ist, dass die Aktivitäten in Florida nun über 200.000 Leben unter wertbasierten Verträgen verwalten, darunter mehr als 50.000 unter Medicare Advantage.
- Removed $40M minimum cash covenant restriction
- Paid down $20M of debt
- Added 80,000 new lives through capitation agreements
- Expanded Florida value-based coverage to 200,000+ lives
- Gained flexibility for equity offerings
- Significant debt burden remains outstanding
- Required amendment to existing facility agreement
Insights
TOI's amendment to its Deerfield facility agreement represents a significant financial restructuring that dramatically improves the company's flexibility. The $20 million debt paydown is substantial, representing approximately 31% of TOI's current
The removal of the
This financial restructuring appears well-timed to support TOI's accelerating growth trajectory. The three new capitation agreements adding 80,000 lives represent meaningful revenue potential, as value-based oncology contracts typically generate predictable per-member-per-month revenue while incentivizing cost-effective care delivery. The Florida market expansion to 200,000 lives under value-based agreements is especially significant, with the 50,000+ Medicare Advantage lives likely representing higher-revenue contracts given the complexity and cost of oncology care for the Medicare population.
This transaction suggests Deerfield maintains confidence in TOI's business model despite requiring partial debt repayment. For investors, this restructuring reduces immediate financial constraints while potentially setting the stage for equity issuance to fund growth initiatives. The company appears to be transitioning from financial preservation to calculated expansion in the value-based oncology space.
CERRITOS, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) -- The Oncology Institute, Inc. (NASDAQ: TOI) (“TOI” or the “Company”), one of the largest value-based community oncology groups in the United States, today announced an amendment to its existing facility agreement with funds affiliated with Deerfield Management Company, L.P. (“Deerfield”), an investment firm committed to advancing healthcare, as well as a partial paydown of the senior secured convertible notes.
Under the amendment, Deerfield agreed to waive certain restrictions regarding the Company’s ability to offer and sell equity and removed the minimum cash covenant of
“We are pleased to reach an agreement with our long-time partners at Deerfield, and we are grateful for their ongoing support and collaboration as we position the company for long-term success,” said Daniel Virnich, CEO of TOI. “The actions announced today strengthen our financial position, while also allowing us to focus on accelerating our growth initiatives. To that end, year to date, TOI has already signed three new capitation agreements, adding approximately 80,000 lives across California, Nevada and Florida markets. Total lives in Florida under value-based agreements now exceed 200,000, with over 50,000 under Medicare Advantage.”
BTIG acted as lead financial advisor to TOI. Latham & Watkins LLP acted as legal advisor to TOI, and Katten Muchin Rosenman LLP acted as legal advisor to Deerfield.
About The Oncology Institute
Founded in 2007, TOI is advancing oncology by delivering highly specialized, value-based cancer care in the community setting. TOI offers cutting-edge, evidence-based cancer care to a population of over 1.8 million patients including clinical trials, transfusions, and other services traditionally associated with the most advanced care delivery organizations. With over 120 employed clinicians and more than 700 teammates in over 70 clinic locations, TOI is changing oncology for the better. For more information visit www.theoncologyinstitute.com.
Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “preliminary,” “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “predict,” “potential,” “guidance,” “approximately,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, anticipated financial results, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations. These statements are based on various assumptions and on the current expectations of TOI and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by anyone as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of TOI. These forward-looking statements are subject to a number of risks and uncertainties, the outcome of judicial and administrative proceedings to which TOI may become a party or investigations to which TOI may become or is subject that could interrupt or limit TOI’s operations, result in adverse judgments, settlements or fines and create negative publicity; changes in TOI’s patient or payors' preferences, prospects and the competitive conditions prevailing in the healthcare sector; failure to address the need to meet stock exchange continued listing standards and the possibility that the Company may have to effect a reverse stock split; the impact of COVID-19 on TOI’s business; those factors discussed in the documents of TOI filed, or to be filed, with the SEC, including the Item 1A. "Risk Factors" section of TOI's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 28, 2024 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that TOI currently is evaluating or does not presently know or that TOI currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect TOI’s plans or forecasts of future events and views as of the date of this press release. TOI anticipates that subsequent events and developments will cause TOI’s assessments to change. TOI does not undertake any obligation to update any of these forward-looking statements. These forward-looking statements should not be relied upon as representing TOI’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Contacts
Media
The Oncology Institute, Inc.
Jaime Valles
marketing@theoncologyinstitute.com
Investors
Solebury Strategic Communications
investors@theoncologyinstitute.com
FAQ
How much debt did The Oncology Institute (TOI) pay down in February 2025?
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How many new lives did TOI add through capitation agreements in 2025?
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