Sound Inpatient Physicians Inc. is close to clinching a $1 billion refinancing with existing lenders, including Monarch Alternative Capital and PGIM, according to people familiar with the matter. The company pivoted to a private deal after failing to drum up enough investor demand to refinance its debt through the syndicated loan market in June. The transaction is expected to close next week and extend the company’s debt by five years.
It will offer an interest rate of 6 percentage points above the benchmark. Barclays Plc, which had been leading the syndicated deal this summer, had been expected to relaunch the loan at a later date after revising some financing terms. But that plan changed following the recent surge in bond yields.
Representatives for PGIM and Barclays declined to comment. Sound Inpatient Physicians and Monarch didn’t immediately respond to requests for comment. Proceeds from the loan were slated to refinance existing debt, following a 2024 debt revamp.
In that transaction, PGIM, Monarch and other lenders put in more than $100 million of new money in Sound Inpatient Physicians and cut roughly $200 million of debt. At the time, Monarch scooped up the company’s debt and PGIM added to its position at distressed prices. The company’s earnings before interest, taxes, depreciation and amortization have since doubled, to more than $250 million.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing