Sound Physicians Closes Liquidity Enhancing Transaction
Strengthening its financial position with an infusion of new capital that will bolster its operations and practices, coast to coast
NEW YORK, May 31, 2024 (Newswire.com) - Sound Physicians, a leading provider of hospital-based physician services and value-based care within the post-acute setting, today announced it has successfully consummated the liquidity enhancing, holistic transaction previously announced on May 21. Read the full release here.
Sound completed the transaction with its equity holders and lenders representing over 99% of its existing first-lien secured debt and 97% of its existing second-lien secured debt. The transaction provides for approximately $125M of new capital and extends maturities across Sound’s loan facilities until 2028, at the earliest. This new capital, together with Sound’s three-year maturity extension, provides substantial runway for Sound to invest in operations and innovation, drive growth, and enhance physician support across its practices nationwide.
“Many of our competitors have been faced with substantial financial challenges in recent years and this agreement provides a strong signal that our key stakeholders support our long-term growth and vision,” said Mike Templer, Sound’s Chief Financial Officer. “The completion of this transaction is a vote of confidence for the work we’ve been doing and it’s an opportunity for us to deepen investment in our business strategy while bolstering our operations and practices across the U.S.” Sound’s Medical Group President Dr. John Birkmeyer added, “This transaction allows us to continue to invest in our clinicians and practice model to deliver better outcomes to our patients and hospital partners.”
Sound named Jeff Alter as CEO in September 2023. The agreement is a culmination of the work of Alter and his leadership team to strengthen Sound’s financial and business operations while maintaining its reputation as a collaborative partner and innovative medical group - and the practice of choice for clinicians, hospitals, and health systems for over 20 years.
“We’re pleased with the terms of this agreement and our ability to strengthen our balance sheet, which is essential to Sound's growth and transformation,” Alter said. “Our advisors at PJT Partners, Ropes & Gray LLP, and Alvarez & Marsal worked diligently to secure this agreement, which positions us well to meet the needs of our clinicians and partners and continue the essential and exceptional work of bringing better to the bedside for our patients.”
About Sound Physicians™
As a physician-founded and led multispecialty medical group, our promise is to bring better to the bedside with our more than 4,000 physicians, advanced practice providers, CRNAs, and nurses practicing community-based medicine in 400-plus hospitals across 45 states. With specialties in emergency and hospital medicine, critical care, anesthesia, and telemedicine, our partners have benefited from Sound’s 23 years of experience innovating and leading through an ever-changing healthcare landscape - with patients at the center of our universe. www.soundphysicians.com.
Source: Sound Physicians
