Performant Financial Corporation Announces $35MM Debt Refinancing
December 20 2021 - 4:05PM
Business Wire
Performant Financial Corporation (Nasdaq: PFMT), (the
"Company"), a leading provider of technology-enabled audit,
recovery, and related analytics services in the United States with
a focus in the healthcare payment integrity services industry,
today announced that it has entered into a new credit agreement
with MUFG Union Bank that provides the Company with up to $35
million in debt financing through a combination term loan and
revolving credit facility.
“Our new commercial banking relationship with MUFG Union Bank
provides further stability to our balance sheet, while enhancing
our ability to drive investment into our growing healthcare
operations. Compared to the credit facility that we have now
refinanced, we estimate that this could yield over $8MM lower debt
service payments in 2022 alone,” stated Rohit Ramchandani, SVP of
Finance & Strategy. These savings are expected to be achieved
through a combination of lower annual principal payments and a
lower interest rate margin, which is tiered based on the Company’s
consolidated leverage ratio.
“We are excited at the flexibility this new arrangement will
help provide to allow us to continue to execute on our growth
strategy and ultimately drive value to our clients and
shareholders,” added Simeon Kohl, GM & SVP of Healthcare.
The credit facility has a maturity in December of 2026, with a
fully funded $20 million term loan and an initially unfunded $15
million revolver. A combination of the term loan proceeds and
existing cash on the balance sheet were used to repay all
outstanding amounts under our prior credit agreement.
“MUFG Union Bank is excited to be Performant’s financial partner
for this credit facility,” said Anvar Hodjaev, Managing Director
and Head of Healthcare for Commercial Banking. “Performant has been
growing their presence in the healthcare IT space substantially and
we are proud to provide the refinancing necessary to support their
continued growth and help them with their strategic goals.”
Additional details regarding the Company's financing are
included in the Company’s Current Report on Form 8-K which is
expected to be filed on December 20, 2021 with the Securities and
Exchange Commission.
About Performant Financial Corporation
Performant provides technology-enabled audit, recovery, and
analytics services in the United States with a focus in the
healthcare payment integrity industry. Performant works with
healthcare payers through claims auditing and eligibility-based
(also known as coordination-of-benefits) services to identify
improper payments. The Company engages clients in both government
and commercial markets. The Company also has a call center which
serves clients with complex consumer engagement needs. Clients of
the Company typically operate in complex and highly regulated
environments and contract for their payment integrity needs in
order to reduce losses on improper healthcare payments.
Powered by a proprietary analytic platform and workflow
technology, Performant also provides professional services related
to the recovery effort, including 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 Livermore, California.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding our outlook for revenues,
net income (loss), and adjusted EBITDA in 2020 and beyond. These
forward-looking statements are based on current expectations,
estimates, assumptions and projections that are subject to change
and actual results may differ materially from the forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the material adverse
impact of the COVID-19 pandemic on our business, results of
operations and financial condition as well as on the business
operations and financial performance of many of our customers, that
the Company may not have sufficient cash flows from operations to
fund ongoing operations and other liquidity needs, that the
Company’s indebtedness could adversely affect its business and
financial condition and could reduce the funds available for other
purposes and the failure to comply with covenants contained in its
credit agreement could result in an event of default that could
adversely affect its results of operations, that the Company faces
a long period to implement a new contract which may result in the
incurring of expenses before the receipt of revenues from new
client relationships, the high level of revenue concentration among
the Company's largest customers and any termination in the
Company’s relationship with any of our significant clients would
result in a material decline in our revenues, that many of the
Company's customer contracts are subject to periodic renewal, are
not exclusive, do not provide for committed business volumes and
may be changed or terminated unilaterally and on short notice, that
the Company may not be able to manage its potential growth
effectively, that the Company faces significant competition in all
of its markets, that continuing limitations on the scope of our
audit activity under our RAC contracts have significantly reduced
our revenue opportunities with this client, that the U.S. federal
government accounts for a significant portion of the Company's
revenues, that future legislative and regulatory changes may have
significant effects on the Company's business, that failure of the
Company's or third parties' operating systems and technology
infrastructure could disrupt the operation of the Company's
business and the threat of breach of the Company's security
measures or failure or unauthorized access to confidential data
that the Company possesses. More information on potential factors
that could affect the Company's financial condition and operating
results is included from time to time in the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of the Company's annual report on
Form 10-K for the year ended December 31, 2020 and subsequently
filed reports on Forms 10-Q and 8-K. The forward-looking statements
are made as of the date of this press release and the Company does
not undertake to update any forward-looking statements to conform
these statements to actual results or revised expectations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211220005815/en/
Richard Zubek Investor Relations 925-960-4988
investors@performantcorp.com
Performant Financial (NASDAQ:PFMT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Performant Financial (NASDAQ:PFMT)
Historical Stock Chart
From Jul 2023 to Jul 2024