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Goldman Sachs Inks $45MM Financing Agreement With Catasys

September 26, 2019, 08:00 AM
Filed Under: Healthcare

Catasys, Inc., a leading AI and technology-enabled healthcare company, has entered into a financing agreement with Goldman Sachs Specialty Lending Group, L.P. involving the placement of Senior Secured Notes due 2024 pursuant to a committed purchase of up to $45 million, comprised of a $35 million initial purchase and up to $10 million in additional issuances.

Catasys intends to use the proceeds to retire the Company’s existing credit facilities, continue scaling new contracts and expansions, invest in additional technology enhancements, develop new products including the Catasys PRE™ platform, and provide excess capital for growth.

Terren Peizer, Chairman and CEO of Catasys, stated, “We are pleased to have closed this financing with Goldman Sachs in support of our growth initiatives without significant dilution to shareholders. Our leadership team worked closely with Goldman Sachs over the past few months and are thrilled to have the bank as a new financing provider, which may result in future funding commitments. Given current and anticipated growth of eligible members of our outreach pool, we anticipate the proceeds from this financing will enable Catasys to achieve positive cash flow as we continue working to execute on our program and platform expansions and technological advancements in the remainder of 2019 and beyond. Given our capital-light model, we remain optimistic that our growth can be funded by access to additional debt capital, if necessary, and internally generated cash flow.”

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