Firm positioned to proceed accelerated progress of dwelling and in-center care, and funding in value-based and revolutionary care fashions
PLANO, Texas, July 24, 2023 /PRNewswire/ — U.S. Renal Care (USRC or the “Firm”), the nation’s largest privately held and quickest rising kidney care supplier, as we speak introduced that it has accomplished a profitable debt refinancing transaction which meaningfully reduces the Firm’s whole debt, lowers its curiosity burden, will increase liquidity, and enhances future progress. The transaction extends the maturities of time period loans by June 2028. USRC closed the refinancing transaction with the help of roughly 84 p.c of its time period lenders, and all different time period mortgage holders are being provided the chance to take part on the identical phrases. A majority of present bondholders additionally participated within the transaction, exchanging their shorter dated bonds for a mix of money and longer maturity time period bonds.
“The broad participation of lenders on this transaction speaks to their continued help of our group, and likewise demonstrates lender alignment with our strategic progress plan,” mentioned Mark Caputo, USRC’s Chairman and Chief Government Officer. “With the monetary flexibility supplied by diminished debt and curiosity prices, we’ll proceed to speed up doctor partnerships and put money into enhanced medical capabilities, together with enlargement of our extremely profitable value-based care applications.”
This debt financing is the second section of the Firm’s plan to boost its capital construction. In Might 2023, USRC introduced that it raised $328 million in new capital to additional allow its progress and enlargement plans. The brand new capital is slated for funding in applications targeted on innovation and supply of high-quality kidney care, in addition to enhanced skilled growth for USRC’s care groups. By this newest transaction, the Firm will scale back annual curiosity expense by roughly 20 p.c.
“Collectively, these transactions advance our dedication to take a position sooner or later and enhance the lives of sufferers who entry kidney care by our greater than 400 clinics and 200 dwelling applications,” added Mr. Caputo.
At the moment, 22 p.c of all training nephrologists in the USA have privileges and look after sufferers in USRC clinics, and practically 80 p.c of its clinics are joint ventures with doctor companions. Collectively, USRC and its nephrologist companions are outpacing the business with affected person census progress of 4 p.c in 2022 and 5 p.c in 2023, whereas the kidney care business general is seeing flat to damaging progress. USRC is a pacesetter in dwelling therapies, with 17 p.c of its sufferers receiving dwelling dialysis.
Most significantly, USRC is a proud chief in medical high quality enchancment. Outcomes from the 2023 cost yr Facilities for Medicare & Medicaid Companies’ (CMS) Finish Stage Renal Illness High quality Incentive Program confirmed USRC has among the many finest outcomes within the business.
USRC’s authorized advisor for this transaction is Kirkland & Ellis LLP, its monetary advisor is PJT Companions LP, and Evercore Group LLC and Milbank LLP suggested the collaborating lenders.
USRC will probably be internet hosting a name open to the Firm’s time period lenders at 10:00am ET on Tuesday, July twenty fifth with particulars posted to the lender web site.
About U.S. Renal Care
U.S. Renal Care companions with nephrologists to care for about 27,000 folks residing with kidney illness nationwide. For over 20 years, U.S. Renal Care has been a pacesetter in medical high quality, innovation, and operational excellence – delivering one of the best expertise and outcomes for our sufferers. The Firm can also be a pacesetter in value-based care, with contracts to handle greater than $1 billion in annual spend by Kidneylink, its value-based care enterprise. U.S. Renal Care operates over 400 in-center and residential dialysis applications throughout 33 states within the U.S. For extra info, please go to usrenalcare.com.
SOURCE U.S. Renal Care, Inc.