Sound Physicians Closes Liquidity Enhancing Transaction

Sound Physicians, a prominent provider of hospital-based physician services and value-based care, has completed a significant liquidity enhancing transaction. The announcement was made on May 31, 2024, finalizing a move previously disclosed on May 21.

The transaction involves the company's equity holders and lenders, representing over 99% of its first-lien secured debt and 97% of its second-lien secured debt. This deal injects approximately $125 million of new capital and extends the maturities of Sound's loan facilities to as far as 2028.

The financial boost and extended maturity timeline allow Sound to invest in operations, drive growth, and enhance physician support nationwide. Mike Templer, Chief Financial Officer, emphasized that this agreement is a strong signal of stakeholder confidence in Sound's long-term vision.

Jeff Alter, CEO since September 2023, highlighted the collaborative effort of advisors at PJT Partners, Ropes & Gray LLP, and Alvarez & Marsal in securing the agreement. He pointed out that the strengthened balance sheet is crucial for Sound's growth and transformation.