Kirkland Represents Modivcare in Raising $105 Million in Incremental Financing
Kirkland & Ellis is advising Modivcare Inc. (Nasdaq: MODV), a technology-enabled healthcare services company providing a platform of integrated supportive care solutions, on key initiatives to support future growth. This includes $75 million in incremental financing, backed by stakeholders across the capital structure, as well as an uptier of unsecured notes to new second lien senior secured PIK toggle notes to the parties backstopping the incremental financing. Existing investor, Coliseum Capital Management, has also committed $30 million to purchase new second lien senior notes due 2029, subject to a stockholder vote. The transaction was announced January 10, 2025.
As part of the financing agreement, revolving lenders agreed to amend the company’s existing credit agreement in order to, among other things, provide covenant relief. Modivcare will also bolster its board of directors with the addition of three new independent directors to be appointed in the coming months. These initiatives, along with a strategic review of its assets that the company is pursuing with its advisors, are intended to strengthen Modivcare’s financial foundation, enhance operational performance and best position Modivcare for a future of sustainable growth.
Read the transaction press release
The Kirkland team includes capital markets lawyers Sophia Hudson, Zoey Hitzert, Pratik Ranjan Das, Varun Baliga and Lune Klappe-Regan; debt finance lawyers Dave Nemecek, Nisha Kanchanapoomi, Katrina Levy and Jaynie Doe; restructuring lawyers Josh Sussberg and Alex Schwarzman; and tax lawyer Thad Davis.
