SALT LAKE CITY - Health Catalyst , Inc. (NASDAQ: NASDAQ:HCAT), a leading provider of data and analytics technology and services to healthcare organizations, has secured a five-year term loan facility of up to $225 million with Silver Point Finance. The agreement, which includes an initial term loan facility of $125 million and a delayed draw term loan facility of $100 million, was finalized on Monday.
The company, which borrowed the full amount of the initial facility at closing, has the option to draw additional funds under the delayed draw facility within specified timeframes, subject to certain terms and conditions. The proceeds from this financing will be used to refinance existing convertible notes set to mature in 2025 and for general corporate purposes, including working capital.
Dan Burton, CEO of Health Catalyst, emphasized the financing's role in providing flexibility and non-dilutive capital to support the company's growth strategies, particularly inorganic growth opportunities and technology integrations. CFO Jason Alger highlighted the transaction's structure, which includes a delayed draw feature, as a strategic way to manage debt while pursuing acquisitions.
Anthony DiNello, Head of Silver Point Finance, expressed confidence in Health Catalyst's growth trajectory and noted the capital provided would aid in executing the company's plans. Lazard (NYSE:LAZ) served as the sole placement agent and financial advisor for the credit facility, while Latham & Watkins LLP provided legal counsel to Health Catalyst.
This financial move is part of Health Catalyst's larger mission to improve healthcare through data-informed decisions, leveraging its cloud-based data platform and analytics software. The company's technology services are powered by data from over 100 million patient records.
The details of the credit facility transaction are also documented in a Current Report on Form 8-K filed with the Securities and Exchange Commission. This press release statement serves as the basis for the information provided.
In other recent news, Health Catalyst, Inc. has revealed a series of updates and developments. The company has announced its Q1 2024 financial results, reporting a total revenue of $74.7 million and an adjusted EBITDA of $3.4 million. This represents a year-over-year revenue increase of 1%. Moreover, Health Catalyst has maintained a robust cash position, ending Q1 with $327.8 million in cash, cash equivalents, and short-term investments.
The company is also actively assessing potential acquisitions. In addition, Health Catalyst has extended its partnership with Saudi German Health to enhance health outcomes in the United Arab Emirates. Despite facing challenges such as a slight decrease in adjusted gross margin, analysts anticipate strong demand for the Health Catalyst Ignite platform and an increase in the company's full portfolio as the end market improves.
Furthermore, during the company's recent annual stockholders' meeting, all proposals were passed, including the re-election of three Class II directors, the ratification of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024, and the approval of the compensation of the company's named executive officers. These are among the recent developments for Health Catalyst, Inc.
InvestingPro Insights
Health Catalyst's recent financial maneuvering reflects its strategic approach to growth and stability. With the new term loan facility, the company is poised to leverage its cash position, which is further supported by the fact that Health Catalyst holds more cash than debt on its balance sheet, as per an InvestingPro Tip. This is a positive sign for investors, indicating a solid financial foundation for pursuing its expansion plans.
From a performance perspective, Health Catalyst has demonstrated significant returns, with a 15.09% return over the last week, a 15.46% return over the last month, and an impressive 28.53% return over the last three months, according to InvestingPro Data. These metrics showcase a strong short-term performance which may interest investors looking for companies with recent positive momentum.
Despite not having been profitable over the last twelve months, analysts predict that Health Catalyst will turn a profit this year. This forward-looking optimism is crucial for potential investors, as reflected in another InvestingPro Tip. With 9 additional tips available on InvestingPro, those interested in a deeper dive into Health Catalyst's prospects can use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Key InvestingPro Data metrics for Health Catalyst include a market capitalization of $432.14 million USD and a revenue growth of 5.24% over the last twelve months as of Q1 2024. These figures may help investors gauge the company's size and growth trajectory in the context of its recent financial activities.
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