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Symplr Backers Plan $175 Million Injection Amid Debt Revamp
Symplr is a company that makes software for healthcare providers.
It owes a lot of money to lenders.
Its private equity owners plan to put about $175 million into the company.
Other lenders may provide another $103.5 million loan.
The plan would change how Symplr’s debt is organized.
Some lenders would receive higher interest payments.
The company would also get more time to repay some loans.
Lenders who reject the deal could receive weaker protections and rank last for repayment.
Clearlake Capital Group and Charlesbank Capital Partners agreed to provide Symplr with about $175 million in preferred equity.
Second-lien lenders, including Ares Capital Corporation, plan to provide $103.5 million in fresh financing.
The restructuring would create multiple debt securities, extend repayment timelines and strengthen lender protections.
First-lien lenders would receive a 100-basis-point coupon increase in exchange for extending the loan maturity by three years.
Symplr’s loans have traded at distressed levels amid software-sector concerns linked to artificial intelligence and rising restructuring risks.
- Who
- Symplr Software, its private equity backers Clearlake Capital Group and Charlesbank Capital Partners, and its creditor groups, including Ares Capital Corporation.
- What
- They agreed to a proposed debt restructuring involving about $175 million of preferred equity and $103.5 million of fresh financing.
- Where
- The restructuring concerns Symplr’s debt and its continuation vehicle; no specific geographic location was stated.
- When
- The agreement follows months of discussions; the source reports loan prices and ratings developments from earlier in the year and July.
- Why
- The plan is intended to conserve cash, reorganize the company’s debt and extend repayment timelines as Symplr’s loans trade at distressed levels.
Key facts
- Preferred equity injection
- About $175 million from Clearlake Capital Group and Charlesbank Capital Partners
- Fresh financing
- $103.5 million first-out second-lien loan planned by second-lien lenders
- First-lien debt
- Approximately $1.2 billion, with the term loan currently due in 2027
- Second-lien debt
- Nearly $290 million, with the term loan currently due in 2028
- Coupon increases
- Existing second-lien and first-lien lenders would receive 100-basis-point increases
- Nonparticipating investors
- Their debt would move to the bottom of Symplr’s capital structure and lose covenant protections
- Loan pricing
- The first-lien loan was recently quoted at 71.4 cents on the dollar, while the second-lien loan was quoted at 70 cents
Sources
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