We advised the administrative agent and collateral agent in connection with the existing ABL credit facility

Davis Polk advised the administrative agent and collateral agent, in connection with an existing $250 million senior secured asset-based revolving credit facility for Prospect Medical Holdings, Inc. and certain of its affiliates. On May 23, 2023, following a maturity default and entry into multiple forbearance arrangements to facilitate Prospect’s negotiation and evaluation of potential immediate and longer term financing and strategic options, the existing revolving credit facility was repaid in full as part of a $375 million refinancing transaction provided by third-party lenders. In addition to repaying the existing facility, proceeds will be used to provide Prospect’s hospital operations with liquidity and capitalize its managed care business.

Prospect Medical Holdings, Inc. is a California healthcare corporation, with affiliate organizations providing healthcare services on both the East and West Coasts.

The restructuring team included partner Brian M. Resnick, counsel Christopher Robertson and associate Mariya Dekhtyar. The finance team included partner Kenneth J. Steinberg and associates David J. Kennedy and Matthew Vallade. All members of the Davis Polk team are based in the New York office.

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