NeueHealth Secures up to $150 Million in New Term Loan Facility with Hercules Capital
June 24 2024 - 6:45AM
Business Wire
- Significantly strengthens balance sheet, positioning Company
for long-term, sustainable growth
- Underscores the value Company delivers to payors, providers,
and consumers across the industry
NeueHealth, Inc. (“NeueHealth” or the “Company”) (NYSE: NEUE),
the value-driven healthcare company, today announced that it
entered into a secured loan facility for up to $150 million with
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules").
“This financing puts us in a strong position to advance our
differentiated care model and take the lead as the industry
continues to shift to value-based care,” said Mike Mikan, President
and CEO of NeueHealth. “We have established longstanding
relationships with payors, providers, and consumers across the
industry, and we look forward to continuing to build on our success
as we make personalized care more accessible and affordable for
all.”
The financing, which will be used to support NeueHealth’s
strategic priorities in 2024 and beyond, further solidifies the
Company’s capital position, enabling it to focus on delivering
value-driven, consumer-centric care to all populations.
“Hercules is pleased to support NeueHealth. We see significant
opportunities in NeueHealth’s ability to drive value for payors and
providers and deliver high-quality care to consumers across the ACA
Marketplace, Medicare, and Medicaid,” said Tom Hertzberg, Managing
Director at Hercules. “NeueHealth is driving value in healthcare
for all, and we are thrilled to be their financial partner,” added
Mike McMahon, Director at Hercules.
More information regarding the financing and the key terms will
be included in a Form 8-K to be filed by NeueHealth with the
Securities and Exchange Commission.
Moelis & Company LLC acted as exclusive placement agent and
capital markets advisor and Simpson Thacher & Bartlett LLP
served as legal advisor to the Company.
About NeueHealth
NeueHealth is a value-driven healthcare company grounded in the
belief that all health consumers are entitled to high-quality,
coordinated care. By uniquely aligning the interests of health
consumers, providers, and payors, NeueHealth helps to make
healthcare accessible and affordable to all populations across the
ACA Marketplace, Medicare, and Medicaid. NeueHealth delivers
high-quality clinical care to over 460,000 health consumers through
owned clinics and unique partnerships with over 3,000 affiliated
providers. We also enable independent providers and medical groups
to thrive in performance-based arrangements through a suite of
technology and services scaled centrally and deployed locally. We
believe our value-driven, consumer-centric care model can transform
the healthcare experience and maximize value across the healthcare
system. For more information, visit: www.neuehealth.com.
Forward-Looking Statements
Statements made in this release that are not statements of
historical fact, including statements about our beliefs and
expectations, are forward-looking statements and should be
evaluated as such. Forward-looking statements include information
concerning possible or assumed future results of operations,
including descriptions of our business plan and strategies. These
statements often include words such as “anticipate,” “expect,”
“plan,” “believe,” “intend,” “project,” “forecast,” “estimates,”
“projections,” “outlook,” “ensure,” and other similar expressions.
These forward-looking statements include any statements regarding
our plans, expectations and financial guidance. Such
forward-looking statements are subject to various risks,
uncertainties and assumptions. Accordingly, there are or will be
important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements. Factors
that might materially affect such forward-looking statements
include: our ability to continue as a going concern; our ability to
comply with the terms of our credit facility or any credit facility
into which we enter in the future; our ability to receive the
remaining proceeds from the sale of our Medicare Advantage business
in California in a timely manner; our ability to obtain any short
or long term debt or equity financing needed to operate our
business; our ability to quickly and efficiently complete the wind
down of our remaining IFP and MA businesses, including by
satisfying liabilities of those businesses when due and payable;
potential disruptions to our business due to corporate
restructuring and any resulting headcount reduction; our ability to
accurately estimate and effectively manage the costs relating to
changes in our businesses offerings and models; a delay or
inability to withdraw regulated capital from our subsidiaries; a
lack of acceptance or slow adoption of our business model; our
ability to retain existing consumers and expand consumer
enrollment; our and our care partner’s abilities to obtain and
accurately assess, code, and report risk adjustment factor scores;
our ability to contract with care providers and arrange for the
provision of quality care; our ability to obtain claims information
timely and accurately; the impact of any pandemic or epidemic on
our business and results of operations; the risks associated with
our reliance on third-party providers to operate our business; the
impact of modifications or changes to the U.S. health insurance
markets; our ability to manage any growth of our business; our
ability to operate, update or implement our technology platform and
other information technology systems; our ability to retain key
executives; our ability to successfully pursue acquisitions and
integrate acquired businesses; the occurrence of severe weather
events, catastrophic health events, natural or man-made disasters,
and social and political conditions or civil unrest; our ability to
prevent and contain data security incidents and the impact of data
security incidents on our members, patients, employees and
financial results; our ability to comply with requirements to
maintain effective internal controls; our ability to adapt to
mitigate risks associated with our ACO Reach businesses, including
any unanticipated market or regulatory developments; and the other
factors set forth under the heading “Risk Factors” in the Company’s
reports on Form 10-K, Form 10-Q, and Form 8-K (including all
amendments to those reports) and our other filings with the SEC.
Except as required by law, we undertake no obligation to update
publicly any forward-looking statements for any reason after the
date of this release to conform these statements to actual results
or changes in our expectations.
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version on businesswire.com: https://www.businesswire.com/news/home/20240624949891/en/
Investor Contact: IR@neuehealth.com
Media Contact: media@neuehealth.com
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