Benzinga | Dec 20, 2021 04:10PM EST

Performant Financial Corporation Announces $35M Debt Refinancing

Performant Financial Corporation (NASDAQ:PFMT), (the "Company"), a leading provider of technology-enabled audit, recovery, and related analytics services in the United States with a focus in the healthcare payment integrity services industry, today announced that it has entered into a new credit agreement with MUFG Union Bank that provides the Company with up to $35 million in debt financing through a combination term loan and revolving credit facility.

"Our new commercial banking relationship with MUFG Union Bank provides further stability to our balance sheet, while enhancing our ability to drive investment into our growing healthcare operations. Compared to the credit facility that we have now refinanced, we estimate that this could yield over $8MM lower debt service payments in 2022 alone," stated Rohit Ramchandani, SVP of Finance & Strategy. These savings are expected to be achieved through a combination of lower annual principal payments and a lower interest rate margin, which is tiered based on the Company's consolidated leverage ratio.

"We are excited at the flexibility this new arrangement will help provide to allow us to continue to execute on our growth strategy and ultimately drive value to our clients and shareholders," added Simeon Kohl, GM & SVP of Healthcare.

The credit facility has a maturity in December of 2026, with a fully funded $20 million term loan and an initially unfunded $15 million revolver. A combination of the term loan proceeds and existing cash on the balance sheet were used to repay all outstanding amounts under our prior credit agreement.

"MUFG Union Bank is excited to be Performant's financial partner for this credit facility," said Anvar Hodjaev, Managing Director and Head of Healthcare for Commercial Banking. "Performant has been growing their presence in the healthcare IT space substantially and we are proud to provide the refinancing necessary to support their continued growth and help them with their strategic goals."

Additional details regarding the Company's financing are included in the Company's Current Report on Form 8-K which is expected to be filed on December 20, 2021 with the Securities and Exchange Commission.