MultiPlan Corp signs agreement with creditors to refinance $4.5 bn debt

By Reshmi Basu 

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. 

Holders of about 78 per cent 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.  

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 per cent secured notes coming due 2028, 5.75 per cent 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.