MultiPlan Gains Investor Support For Refinancing Plan, Shares Surge

MultiPlan Corporation MPLN shares surged on Tuesday after it disclosed a comprehensive refinancing plan to extend the maturities of its entire debt structure.

The company has entered into a Transaction Support Agreement with key noteholders and lenders, collectively representing approximately 78% of its outstanding debt.

This includes replacing existing revolving credit commitments with $350 million in new “first-out” first lien revolving credit, extending maturity from Aug. 24, 2026, to Dec. 31, 2029.

The plan offers to exchange term loans maturing in 2028 for up to $325 million in new “first-out” first lien term loans and $1.14 billion in new “second-out” first lien term loans, both maturing in 2030.

Additionally, existing senior secured, unsecured, and convertible notes will be exchanged for a mix of new debt instruments with staggered maturities and interest structures.

MultiPlan seeks consent to eliminate most covenants and default provisions on old notes, release collateral on senior secured notes, and amend the 2021 First Lien Credit Agreement by removing covenants and guarantors.

The company will finalize related documents under the Transaction Support Agreement to improve financial flexibility and extend debt maturities, aligning with its strategic objectives.

Completion is contingent upon the fulfillment or waiver of customary closing conditions.

Chief Executive Officer of MultiPlan Travis Dalton said, “This refinancing extends our debt maturities and will ensure that our capital structure enables us to operate as efficiently and sustainably as possible,”

“We’re grateful for the broad-based backing from investors who support our Vision 2030 transformation plan and contributed to this attractive refinancing.”

”This successful outcome will help our leadership team execute our transformation into a data and technology-forward company focused on cost management, improving quality and transparency in healthcare.”

As of the third quarter of 2024, unrestricted cash and cash equivalents stood at $86.6 million.

Price Action: MPLN shares rose 90.9% to $12.24 on Tuesday.

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