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July 16, 2024
$225mm
Structure: Two-Tranche Facility
Tranche 1: $125 Million Initial Term Loan Facility
Tranche 2: $100 Million Delayed Draw Term Loan Facility
Maturity: July 16, 2029 (5 Years)
Effective Interest Rate: SOFR + 6.5%
Matthews South Role: Capital Markets Advisor
Tranche 1: $125 Million Initial Term Loan Facility
Tranche 2: $100 Million Delayed Draw Term Loan Facility
Maturity: July 16, 2029 (5 Years)
Effective Interest Rate: SOFR + 6.5%
Matthews South Role: Capital Markets Advisor
$225 Million New Credit Facility
- Transaction Overview
- On July 16, 2024, Health Catalyst announced it has entered a five-year term loan facility for up to $225 million with Silver Point Capital, which consists of (i) an initial term loan facility of $125 million and (ii) a delayed draw term loan facility of $100 million
- Company plans to use the net proceeds of the initial facility, together with cash on hand, to pre-fund its existing convertible notes due 2025 and other corporate purposes
- Matthews South acted as capital markets advisor and Lazard acted as placement agent to Health Catalyst
- Matthews South Role
- Matthews South provided Health Catalyst with ongoing analysis on its capital structure and considerations around pre-funding / refinancing its existing convertible notes
- Assisted the company in making tradeoffs between debt retirement objectives, economic return and value of cash on balance sheet for financial flexibility
- Understanding the objectives of Health Catalyst to raise money while limiting dilution, Matthews South recommended private credit as the most efficient solution for the company
- Advised on desirability of convertibles and other alternative sources of capital in terms of size and terms available, including the dilutive impact of equity-linked alternatives based on current stock price
- Matthews South provided Health Catalyst with ongoing analysis on its capital structure and considerations around pre-funding / refinancing its existing convertible notes
Additional Deals for Health Catalyst: