U.S. Renal Care Announces Enhanced Capital Structure through Successful Refinancing and Deleveraging of Debt, including Reducing Interest Costs and Extending Maturities

Company positioned to continue accelerated growth of home and in-center care, and investment in value-based and innovative care models 

PLANO, Texas, July 24, 2023 /PRNewswire/ -- U.S. Renal Care (USRC or the "Company"), the nation's largest privately held and fastest growing kidney care provider, today announced that it has completed a successful debt refinancing transaction which meaningfully reduces the Company's total debt, lowers its interest burden, increases liquidity, and enhances future growth. The transaction extends the maturities of term loans through June 2028. USRC closed the refinancing transaction with the support of approximately 84 percent of its term lenders, and all other term loan holders are being offered the opportunity to participate on the same terms.  A majority of existing bondholders also participated in the transaction, exchanging their shorter dated bonds for a combination of cash and longer maturity term bonds.

"The broad participation of lenders in this transaction speaks to their continued support of our organization, and also demonstrates lender alignment with our strategic growth plan," said Mark Caputo, USRC's Chairman and Chief Executive Officer. "With the financial flexibility provided by reduced debt and interest costs, we will continue to accelerate physician partnerships and invest in enhanced clinical capabilities, including expansion of our highly successful value-based care programs."

This debt financing is the second phase of the Company's plan to enhance its capital structure. In May 2023, USRC announced that it raised $328 million in new capital to further enable its growth and expansion plans. The new capital is slated for investment in programs focused on innovation and delivery of high-quality kidney care, as well as enhanced professional development for USRC's care teams. Through this latest transaction, the Company will reduce annual interest expense by approximately 20 percent.

"Together, these transactions advance our commitment to invest in the future and improve the lives of patients who access kidney care through our more than 400 clinics and 200 home programs," added Mr. Caputo.

Currently, 22 percent of all practicing nephrologists in the United States have privileges and care for patients in USRC clinics, and nearly 80 percent of its clinics are joint ventures with physician partners. Together, USRC and its nephrologist partners are outpacing the industry with patient census growth of 4 percent in 2022 and 5 percent in 2023, while the kidney care industry overall is seeing flat to negative growth. USRC is a leader in home therapies, with 17 percent of its patients receiving home dialysis.

Most importantly, USRC is a proud leader in clinical quality improvement. Results from the 2023 payment year Centers for Medicare & Medicaid Services' (CMS) End Stage Renal Disease Quality Incentive Program showed USRC has among the best outcomes in the industry.

USRC's legal advisor for this transaction is Kirkland & Ellis LLP, its financial advisor is PJT Partners LP, and Evercore Group LLC and Milbank LLP advised the participating lenders. 

USRC will be hosting a call open to the Company's term lenders at 10:00am ET on Tuesday, July 25th with details posted to the lender website.

About U.S. Renal Care 
U.S. Renal Care partners with nephrologists to care for approximately 27,000 people living with kidney disease nationwide. For over two decades, U.S. Renal Care has been a leader in clinical quality, innovation, and operational excellence ? delivering the best experience and outcomes for our patients. The Company is also a leader in value-based care, with contracts to manage more than $1 billion in annual spend through Kidneylink, its value-based care business. U.S. Renal Care operates over 400 in-center and home dialysis programs across 33 states in the U.S. For more information, please visit usrenalcare.com.

SOURCE U.S. Renal Care, Inc.