BioScrip Announces New Senior Note Facilities
29 Juin 2017 - 2:30PM
BioScrip, Inc. (NASDAQ:BIOS) ("BioScrip" or the "Company"), the
largest independent national provider of infusion and home care
management solutions, today announced that the Company has entered
into an agreement with a group of note purchasers, led by funds
managed by Ares Management, L.P. (NYSE:ARES), to refinance its
existing senior credit facility and priming credit agreement.
Under the agreement, the Company entered into a $200 million first
lien note facility and a $110 million second lien note facility
(the “Facilities”). Upon funding of the Facilities at close,
the Company will receive $300 million and will use the proceeds of
the Facilities to repay in full all amounts outstanding under its
previous senior credit facilities and its priming credit agreement.
Also as part of the agreement, the Company will receive a $16
million common stock investment, and will issue common stock
warrants with a 10-year term. Cash on hand at close will be in
excess of $40 million, and combined with $10 million of additional
availability on the second lien note, results in Company liquidity
in excess of $50 million. The Company expects the transaction to
close on June 29, 2017.
“This agreement greatly strengthens BioScrip, effectively
eliminates debt maturities for at least three years, significantly
improves our liquidity, and partners BioScrip with top tier
investors,” said Daniel E. Greenleaf, President and Chief Executive
Officer. “Following the achievement of this important financial
milestone, BioScrip will remain focused on accelerating the growth
of our profitable business segments and driving operational
efficiencies throughout the organization. Additionally, the Company
is reiterating its prior guidance of $45 million to $55 million of
adjusted EBITDA for the full year of 2017.”
“Our new capital structure best positions BioScrip to achieve
its financial and operational goals going forward,” said Stephen
Deitsch, SVP, Chief Financial Officer, and Treasurer. “The
elimination of over $100 million of debt maturities over the next
24 months greatly increases the Company’s financial flexibility.
Additionally, we will reduce our ongoing annual interest rate, and
we have the potential to extend both lien maturities to 5
years.”
“We are excited to invest with Dan and the team at BioScrip to
provide a capital solution that creates incremental liquidity and
business flexibility as the Company executes its strategies to
capture growth opportunities within the infusion market,” said
Scott Graves, Partner in the Private Equity Group of Ares
Management, L.P.
The sale of common stock in the private placement and the sale
of the warrants are exempt from the registration requirements of
the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to the exemption for transactions by an issuer not
involving any public offering under Section 4(a)(2) of the
Securities Act. The securities sold and issued in
the private placement and the warrants will not be
registered under the Securities Act or any state securities laws
and may not be offered or sold in the United States absent
registration with the SEC or an applicable exemption from the
registration requirements.
Forward-Looking Statements – Safe Harbor
This press release includes statements that may
constitute "forward-looking statements,” that involve substantial
risks and uncertainties. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. You can identify these statements by the fact that
they do not relate strictly to historical or current facts. In some
cases, forward-looking statements can be identified by words such
as "may," "should," "could," "anticipate," "estimate," "expect,"
"project," "outlook," "aim," "intend," "plan," "believe,"
"predict," "potential," "continue" or comparable terms. Because
such statements inherently involve risks and uncertainties, actual
future results may differ materially from those expressed or
implied by such forward-looking statements. Investors are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that
actual results may differ materially from those in the
forward-looking statements as a result of various factors.
Important factors that could cause or contribute to such
differences include but are not limited to risks associated with:
the Company’s ability to complete the Private Placement on
acceptable terms or at all, the Company's ability to integrate the
acquisition of Home Solutions, the Company's ability to grow its
core Infusion revenues, the Company's ability to continue to
experience positive results from its financial improvement plan to
reduce operating costs; the Company’s ability to comply with the
covenants in its debt agreements; the success of the Company’s
initiatives to mitigate the impact of the Cures Act on its
business; reductions in federal, state and commercial reimbursement
for the Company's products and services; increased government
regulation related to the health care and insurance industries; as
well as the risks described in the Company's periodic filings with
the Securities and Exchange Commission. The Company does not
undertake any duty to update these forward-looking statements after
the date hereof, even though the Company's situation may change in
the future. All of the forward-looking statements herein are
qualified by these cautionary statements.
About BioScrip
BioScrip, Inc. is the largest independent
national provider of infusion and home care management solutions,
with approximately 2,500 teammates and nearly 80 service locations
across the U.S. BioScrip partners with physicians, hospital
systems, payors, pharmaceutical manufacturers and skilled nursing
facilities to provide patients access to post-acute care services.
BioScrip operates with a commitment to bring customer-focused
pharmacy and related healthcare infusion therapy services into the
home or alternate-site setting. By collaborating with the full
spectrum of healthcare professionals and the patient, BioScrip
provides cost-effective care that is driven by clinical excellence,
customer service, and values that promote positive outcomes and an
enhanced quality of life for those it serves.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global
alternative asset manager with approximately $100 billion of assets
under management as of March 31, 2017 and more than 15 offices in
the United States, Europe and Asia. Since its inception in 1997,
Ares has adhered to a disciplined investment philosophy that
focuses on delivering strong risk-adjusted investment returns
throughout market cycles. Ares believes each of its three distinct
but complementary investment groups in Credit, Private Equity and
Real Estate is a market leader based on assets under management and
investment performance. Ares was built upon the fundamental
principle that each group benefits from being part of the greater
whole. For more information, visit www.aresmgmt.com.
Contacts:
For BioScrip:
Stephen Deitsch
Chief Financial Officer & Treasurer
T: (720) 697-5200
stephen.deitsch@bioscrip.com
David Clair
ICR, Inc.
T: (646) 277-1266
david.clair@icrinc.com
For Ares Management:
Investors:
Ares Management, L.P.
Carl Drake, 800-340-6597
cdrake@aresmgmt.com
Media:
Mendel Communications
Bill Mendel, 212-397-1030
bill@mendelcommunications.com
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