Modivcare (MODV) has unveiled several strategic initiatives aimed at fostering future growth. The company has successfully obtained an additional $75 million in financing, with backing from stakeholders throughout its capital structure. Coliseum Capital Management, an existing investor, has pledged $30 million toward the acquisition of new second lien senior notes, maturing in 2029. Furthermore, revolving lenders have agreed to amend the current credit agreement, offering covenant relief among other adjustments. To optimize shareholder value, Modivcare is working with advisors to conduct a strategic asset review, which could potentially involve the sale of certain assets.
In a related development, Modivcare has named Chad Shandler, who serves as the Senior Managing Director and Co-Leader of the Corporate Finance Healthcare practice at FTI Consulting, as Chief Transformation Officer.
Additionally, the company has retracted its revenue and adjusted EBITDA forecasts for the fiscal year 2024, as well as its expectations for adjusted EBITDA growth in fiscal 2025, along with related forward-looking statements.
