Loan & DebtMay 11, 2026, 06:56 AM
Accendra Health to Issue $326.25M First Lien Notes, Refinance Debt
AI Summary
Accendra Health entered into a Commitment and Consent Letter to implement a comprehensive capital structure optimization. This includes offering $326.25 million in new 9.000% Senior Secured First Lien Notes due 2032, conducting exchange offers for its existing 2029 and 2030 Senior Notes, and establishing a new $300.0 million revolving credit facility due 2030. The transaction aims to address near-term maturities, reduce funded debt, and enhance liquidity, extending the weighted average life of its debt to approximately 5.5 years.
Key Highlights
- Accendra Health to offer $326.25 million in 9.000% Senior Secured First Lien Notes due 2032.
- A new $300.0 million revolving credit facility due 2030 will be established.
- Existing 2029 and 2030 Senior Notes will be exchanged for new First Lien and 9.750% Second Lien Notes due 2033.
- Backstop Parties committed to purchase $261.0 million of new First Lien Notes, with an option for an additional $65.25 million.
- Backstop Parties will receive a 3.50% cash fee on all new First Lien Notes.
- Pro forma weighted average life of debt is expected to double to ~5.5 years from ~2.7 years.
- Management targets leverage reduction from current 4.9x to less than 3.0x.
- The P&HS divestiture removed a material source of cash consumption, improving cash flow.
- Accendra Health projects normalized unlevered free cash flow of $230 million in FY26E and $245 million in FY27E.