(Bloomberg) -- Health-care analytics company MultiPlan Corp. has reached an agreement with a majority of its creditors to extend the maturities of its existing debt, according to a statement viewed by Bloomberg.
Shares of the company rose as much as 82% on Tuesday — as of 10:13 a.m. New York time — after Bloomberg first reported the news.
Holders of about 78% of various bonds and term loans have agreed to the deal, which targets debt due between 2026 and 2028. The company listed $4.5 billion of long-term debt as of Sept. 30, according to public disclosures.
S&P Global Ratings downgraded the company five notches to CC from B, saying that it viewed the debt financing as a distressed exchange.
Under the plan, holders of its existing first-lien term loan maturing in 2028 can swap a portion of their debt for new first-lien term loans, both maturing in 2030. One loan would offer lenders a “first out” position, meaning they would be paid back first in case of a default, while another would offer lenders a “second out” position.
Participating creditors can also exchange their 5.5% secured notes coming due 2028, 5.75% senior unsecured notes due in 2028 and convertible PIK toggle notes maturing in 2027 for a mix of loans with different repayment priorities.
MultiPlan also will secure a new $350 million first-out revolving credit facility, whose maturity will be extended to December 2029 from August 2026.
(Updates with share-price movement in the second paragraph and S&P Global Ratings’ downgrade in the fourth paragraph.)
©2024 Bloomberg L.P.