BrightSpring Health Services, Inc. Announced Refinancing of Term Loan B
Rhea-AI Summary
BrightSpring Health Services (NASDAQ: BTSG) has successfully refinanced its entire $2.55 billion Term Loan B facility due February 2031 through its subsidiary Phoenix Guarantor Inc. The refinancing resulted in a reduced interest rate, with the facility now priced at SOFR +250 basis points, down from SOFR +325 basis points. This 75 basis point reduction is expected to generate annual cash interest savings of approximately $19.1 million. The transaction was completed without incurring any additional debt, with Morgan Stanley and KKR Capital Markets acting as lead bookrunners.
Positive
- Achieved $19.1 million in annual cash interest savings
- Reduced interest rate by 75 basis points
- No additional debt incurred from refinancing
Negative
- Maintains substantial debt load of $2.55 billion
News Market Reaction
On the day this news was published, BTSG declined 2.34%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
LOUISVILLE, Ky., Dec. 11, 2024 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG), a leading provider of home and community-based health services for complex populations, completed the successful refinancing of all of its
The Company’s refinanced facility was repriced at SOFR +250 basis points, vs. the prior issuance at SOFR +325 basis points. The repricing reduced the applicable interest rate on the outstanding term loan by 75 basis points, representing an estimated cash interest savings of approximately
Morgan Stanley and KKR Capital Markets served as the lead bookrunners for the loan.
About BrightSpring Health Services
BrightSpring Health Services provides complementary and integrated home- and community-based pharmacy and health solutions for complex populations in need of specialized and/or chronic care. Through the Company’s service lines, including pharmacy, home health care and primary care, and rehabilitation and behavioral health, we provide comprehensive care and clinical solutions in all 50 states to over 400,000 customers, clients and patients daily. BrightSpring’s services improve the quality of life and health for high-need individuals while reducing overall costs to the healthcare system.
Forward Looking Statements
The statements contained in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on BrightSpring’s current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. These expectations, beliefs, and projections are expressed in good faith and BrightSpring believes there is a reasonable basis for them. However, there can be no assurance that these expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond BrightSpring’s control. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in BrightSpring’s filings with the Securities and Exchange Commission (the “SEC”) under caption “Risk Factors,” including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent other filings BrightSpring makes with the SEC from time to time. Any forward-looking statement in this press release speaks only as of the date of this release. BrightSpring undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
Contact
Investor Relations:
David Deuchler, CFA
Gilmartin Group LLC
ir@brightspringhealth.com
Media Contact:
Leigh White
leigh.white@brightspringhealth.com
502.630.7412
FAQ
How much will BrightSpring (BTSG) save annually from its Term Loan B refinancing?
What is the new interest rate for BrightSpring's (BTSG) refinanced Term Loan B?
When does BrightSpring's (BTSG) refinanced Term Loan B mature?
How much is BrightSpring's (BTSG) total Term Loan B facility?
