We advised an ad hoc group of term lenders in connection with the transaction 

Davis Polk advised an ad hoc group of term lenders to ATI Physical Therapy Inc. in connection with an exchange of ATI’s existing term loans for an issuance of $100 million of new 8.0% convertible senior secured second-lien PIK notes due 2028 and a $25 million delayed draw commitment for additional convertible PIK notes. Holders of the convertible PIK notes also received shares of a new series of preferred stock, which provides the holders with voting rights on corporate matters on an as-converted basis.

ATI is an outpatient physical therapy provider that specializes in outpatient rehabilitation and adjacent healthcare services. ATI is headquartered in Bolingbrook, Illinois. It has over 900 locations across the United States with over 6,000 employees and services over 400,000 patients annually.

The Davis Polk restructuring team included partners Brian M. Resnick, counsel Christian Fischer and associates Alexander K.B. Shimamura and Amber Leary. The corporate team included partner Leonard Kreynin and associate Alex S. Burger. The capital markets team included partner Dan Gibbons and associate Michael Jiang. Partner Patrick E. Sigmon provided tax advice. Partner Derek Walters provided equity derivatives advice. All members of the Davis Polk team are based in the New York office.