ATLANTA--(BUSINESS WIRE)--Cotiviti Holdings, Inc. (NYSE:COTV) (“Cotiviti”), a leading payment accuracy provider to the healthcare and retail industries, announced today the successful completion of the previously announced refinancing of its first and second lien term loans and revolving credit facility.
Cotiviti Corporation and certain other subsidiaries of the company entered into a Restated Credit Agreement comprised of a $250 million term loan A due in September 2021; a $550 million term loan B due in September 2023 and a $100 million revolving credit facility due in September 2021. The proceeds from term loans A and B, and cash on hand, are being used to refinance Cotiviti’s existing first and second lien loans. After the refinancing, total debt outstanding is reduced to $800 million from $823 million at June 30, 2016.
With the exception of size, term, pricing and certain covenants, the restated credit agreement is substantially similar to Cotiviti’s previous credit agreement.
“We are very pleased with the successful refinancing of our credit facilities and the ability to improve our financial flexibility by reducing interest rates and extending maturities,” said Steve Senneff, Chief Financial Officer of Cotiviti. “Based on our June 30, 2016 net leverage of 3.5x proforma for the refinancing, we have decreased our weighted average cost of debt 83 basis points to 3.54% from 4.37%.”
JPMorgan Chase Bank, N.A., SunTrust Robinson Humphrey, Inc., Goldman Sachs Bank USA, Barclays Bank PLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding, Inc. and RBC Capital Markets acted as Joint Lead Arrangers and the Joint Bookrunners on the transaction.
About Cotiviti
Cotiviti is a leading payment accuracy provider that helps healthcare payers and retailers achieve their business objectives by unlocking value from the incongruities the company discovers in the complex interactions customers have with stakeholders. Cotiviti helps clients capture over $3 billion annually through improved payment accuracy. Cotiviti provides services to eight of the top ten U.S. healthcare payers and eight of the top ten U.S. retailers.
