Providence Service Corporation and Frazier Healthcare Partners Complete Formation of Strategic Partnership in Matrix Medical ...
October 19 2016 - 10:15PM
The Providence Service Corporation (“Providence” or “Company”)
(Nasdaq:PRSC) today announced the completed formation of a
strategic partnership with affiliates of Frazier Healthcare
Partners (“Frazier”) in Matrix Medical Network (“Matrix”).
As previously reported, the creation of the
strategic partnership values Matrix at $537.5 million. In
connection with the transaction, Matrix received an investment from
Frazier in exchange for a 53.2% equity interest, as well as
proceeds from a new $198 million term loan facility.
Providence subsequently received approximately $380 million from
Matrix and retained a 46.8% equity interest. Providence and
Frazier agreed to reduce the size of the new Matrix term loan and
increase Providence’s retained equity interest from what was
previously announced. We believe that this modified capital
structure better enables Matrix to pursue its near-term acquisition
strategy.
Providence will use a portion of the cash
proceeds received from Matrix to repay in full Providence’s
existing term loan and revolving credit facilities. Subject
to management evaluation of market and business conditions and
other factors, and approval by Providence’s Board of Directors as
needed, remaining net proceeds may be used by Providence for
acquisitions, investments in the long-term development of the
Company’s other businesses and the return of capital to
stockholders through a stock repurchase program, as well as general
corporate purposes.
About Providence
The Providence Service Corporation is a holding
company whose subsidiaries and minority holdings provide
non-emergency transportation services, workforce development
services, health assessment services, and care management services
in the United States and abroad. For more information, please
visit www.prscholdings.com.
About Frazier Healthcare Partners
Founded in 1991, Frazier Healthcare Partners is
a leading provider of growth capital to healthcare companies. The
firm has over $2.9 billion in committed capital under management
and has made investments in over 170 healthcare companies with
investment types ranging from company creation and venture capital
to growth buyouts and leveraged recapitalizations. Frazier’s
experienced team takes an active approach to helping build
portfolio companies, leveraging the team’s deep domain expertise
and expansive network of healthcare executives, advisors and
industry thought leaders. The firm’s Growth Buyout team invests in
profitable companies focusing on healthcare services,
pharmaceutical services, medical products, and related sectors. The
firm’s Life Sciences team invests in therapeutics and related areas
that are addressing unmet medical needs through innovation. Frazier
has offices in Seattle, Washington and Menlo Park, California, and
invests broadly across the United States, Canada, and Europe.
Additional information about Frazier is available through its
website, www.frazierhealthcare.com.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Words such as “believe,” “demonstrate,”
“expect,” “estimate,” “forecast,” “anticipate,” “should” and
“likely” and similar expressions identify forward-looking
statements. In addition, statements that are not historical should
also be considered forward-looking statements. Readers are
cautioned not to place undue reliance on those forward-looking
statements, which speak only as of the date the statement was made.
Such forward-looking statements are based on current expectations
and assumptions of Providence’s management that involve a number of
known and unknown risks, uncertainties and other factors which may
cause actual events to be materially different from those expressed
or implied by such forward-looking statements. These factors
include, but are not limited to, the ability of Matrix to realize
the anticipated benefits of the partnership between Providence and
Frazier, the impact of the consummation of the transaction on
relationships, including with employees, customers and competitors
and other risks detailed in Providence’s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended December 31, 2015 and
subsequent filings. Providence is under no obligation to (and
expressly disclaims any such obligation to) update any of the
information in this press release if any forward-looking statement
later turns out to be inaccurate whether as a result of new
information, future events or otherwise.
Investor Relations Contact
Chris Brigleb – VP of Finance
(203) 816-6589
Providence Service (NASDAQ:PRSC)
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