SALT
LAKE CITY, July 18, 2024 /PRNewswire/ -- Health
Catalyst, Inc. ("Health Catalyst" or the "Company") (Nasdaq: HCAT),
a leading provider of data and analytics technology and services to
healthcare organizations, today announced it has entered into a
five-year term loan facility for up to $225,000,000 (the
"Credit Facility" or the "Financing") with Silver Point Finance,
the direct lending business of Silver Point Capital, L.P. The
Financing consists of (i) an initial term loan facility in an
aggregate principal amount of $125,000,000 (the "Initial Facility") and (ii) a
delayed draw term loan facility (the "Delayed Draw Facility") in an
aggregate principal amount of $100,000,000.
The Credit Facility closed on July 16,
2024 (the "Closing Date"), and Health Catalyst borrowed
$125,000,000 of the Initial Facility
(constituting the entire amount thereof) on the Closing Date. The
Delayed Draw Facility remained undrawn as of the Closing Date.
Health Catalyst has the option to draw (x) up to $40,000,000 under the Delayed Draw Facility at
any time on or prior to the date that is six months after the
Closing Date, and (y) up to an additional $60,000,000 under the Delayed Draw Facility at
any time on or prior to the date that is 18 months after the
Closing Date, in each case subject to certain terms and
conditions.
The net proceeds of the Initial Facility, together with cash on
hand, will be used (x) to refinance Health Catalyst's existing
convertible notes, which mature in 2025, at any time at or prior to
maturity, and (y) for working capital and general corporate
purposes. The proceeds of the Delayed Draw Facility may be used to
fund Health Catalyst's inorganic growth strategy.
"This financing is an important milestone for Health Catalyst
and its shareholders. The Credit Facility not only assists with
refinancing our existing convertible notes, but also provides
flexibility and additional non-dilutive capital for us to continue
to proactively pursue meaningful organic and inorganic growth
opportunities, and to continue to act as a consolidation platform
for our clients, integrating compelling technologies within our
five areas of focus, which we believe positions us well to create
client and shareholder value. We are pleased to have Silver Point
as a long-term strategic financing partner as we continue our
mission to be the catalyst for massive, measurable, data-informed
healthcare improvement," said Dan
Burton, Health Catalyst's Chief Executive Officer.
Jason Alger, Health Catalyst's
Chief Financial Officer, shared, "This financing represents a
dynamic, flexible solution that allows Health Catalyst to refinance
existing debt and fund growth initiatives in a non-dilutive way.
Additionally, we believe that the structure of the financing, in
particular the delayed draw feature, allows us to continue to
pursue and finance our acquisition strategy as we continue to work
on improving EBITDA and increasing our cashflow. This flexible
structure, which we believe enables us to address our near-term
convertible notes maturity in a non-dilutive fashion, allows us to
focus on creating value for our shareholders, while maintaining a
strong, flexible balance sheet."
"We are pleased to partner with Health Catalyst and work closely
with their team to develop a flexible financing solution that
supports the Company's growth initiatives and enables the Company
to refinance their existing convertible notes. The Company is at an
exciting inflection point and we believe our capital allows Dan,
Jason and the entire team the time, flexibility and dry powder to
execute their plan," said Anthony
DiNello, Head of Silver Point Finance.
Lazard acted as sole placement agent and financial advisor to
the Company in connection with the Credit Facility and Latham &
Watkins LLP acted as legal advisor to the Company.
Additional information about this transaction can be found in a
Current Report on Form 8-K filed by the Company with the Securities
and Exchange Commission.
About Health Catalyst
Health Catalyst is a
leading provider of data and analytics technology and services to
healthcare organizations committed to being the catalyst for
massive, measurable, data-informed healthcare improvement. Its
customers leverage the cloud-based data platform—powered by data
from more than 100 million patient records and encompassing
trillions of facts—as well as its analytics software and
professional services expertise to make data-informed decisions and
realize measurable clinical, financial, and operational
improvements. Health Catalyst envisions a future in which all
healthcare decisions are data informed.
About Silver Point Finance
For over 20 years, Silver
Point Finance ("SPF") has been an active participant in the direct
lending market, providing customized financing solutions to
middle-market companies across a broad range of industries. SPF's
transactions support acquisitions, refinancings, bridge loans,
growth capital, balance sheet restructurings and leveraged
recapitalizations. Along with its affiliates, SPF manages
approximately $13 billion in
investable capital and, in 2023, agented or arranged approximately
$6.2 billion in credit facilities.
Silver Point Finance is the direct lending business of Silver Point
Capital, L.P., a leader in global credit investing that oversees
the management of approximately $31
billion in investable capital. For more information, please
visit silverpointfinance.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and the Private Securities Litigation Reform Act of 1995, as
amended. These forward-looking statements include statements
regarding the availability of the Delayed Draw Facility, the use of
proceeds from the loans under the Credit Facility, the Company's
ability to refinance existing indebtedness, potential investments
in technology, the Company's pursuit and financing of the Company's
acquisition strategy, and the Company's ability to maximize
shareholder value. Forward-looking statements are subject to risks
and uncertainties and are based on potentially inaccurate
assumptions that could cause actual results to differ materially
from those expected or implied by the forward-looking statements.
Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of
future performance.
Important risks and uncertainties that could cause actual
results to differ materially from the Company's expectations
include, among others, risks and uncertainties relating to the
aggregate overall level of indebtedness that the Company incurs and
the terms and conditions of any changes in the Company's debt
financing; risks and uncertainties concerning the use of proceeds
or the allocation and uses of capital; risks and uncertainties
related to fluctuations in the secured overnight financing rate,
federal funds- and/or prime-based rates; and risks and
uncertainties concerning whether the financial performance of the
Company meets expectations. For a detailed discussion of the risk
factors that could affect the Company's actual results, please
refer to the risk factors identified in the Company's SEC reports,
including, but not limited to the Quarterly Report on Form 10-Q for
the fiscal quarter ended March 31,
2024 filed with the SEC on May 10,
2024 and the Annual Report on Form 10-K for the year ended
December 31, 2023 filed with the SEC
on February 22, 2024. All information
provided in this release and in the attachments is as of the date
hereof, and the Company undertakes no duty to update or revise this
information unless required by law.
Media Contact:
Amanda
Hundt
Vice President, Corporate Communications
amanda.hundt@healthcatalyst.com
575-491-0974
Health Catalyst Investor Relations
Contact:
Jack Knight
Vice President, Investor Relations
ir@healthcatalyst.com
855-309-6800
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SOURCE Health Catalyst