FORT LEE, N.J. — November 2, 2016 — InnovaCare, Inc., a leading provider of Medicare and Medicaid healthcare insurance services, announced today that it has entered into an amendment with its lenders to extend the maturity of the Company’s outstanding indebtedness. Under the terms of the agreement, the maturity of InnovaCare’s $300 million of indebtedness has been extended from December 2016 to June 30, 2019. In connection with the agreement, InnovaCare made a principal prepayment of $40 million and has agreed to a fixed amortization schedule commencing in 2018.
“We are very pleased to reach agreement with our lenders on this term extension,” said Dr. Richard Shinto, Chief Executive Officer for InnovaCare. “The agreement reflects the continuing strength of our healthcare business in Puerto Rico and the high quality of services we provide to over 475,000 Medicare Advantage and Medicaid beneficiaries.”
Douglas Malton, the Company’s Chief Financial Officer added: “Coupled with sustained growth in EBITDA over the past two years, the establishment of a profitable Medicaid business in 2015 and the second consecutive 4 Star rating from CMS, the support of our lenders on this term extension provides the Company with substantial flexibility as we continue to capitalize on various opportunities to sustain and grow our business over the next two years. “
InnovaCare, Inc. is the parent company of healthcare insurers MMM Healthcare, LLC, PMC Medicare Choice, LLC and MMM Multi Health, LLC, which together constitute the largest Medicare Advantage and Medicaid insurance organization in Puerto Rico. For more information, please visit www.innovacarehealth.com.