Article
Ingenovis Secures $85M AR Facility From Sixth Street; Q1’25 Boosted by Nurse Strike
Ingenovis disclosed to lenders yesterday, May 14, that it closed an $85 million accounts receivable facility to boost liquidity, according to sources.
The five-year facility, extended by Sixth Street, bears a cash interest of SOFR+600 bps with a minimum utilization rate of 50%, the sources said.
The privately held healthcare staffing company held a lender call yesterday afternoon and revealed the new financing together with its first-quarter 2025 flashes to lenders, the sources said.
Revenue for the quarter ended March 31 came in at about $400 million, up from $198 million a year earlier, due to the favorable outcome from the Oregon nurses strike. Compliance adjusted EBITDA swung to $43 million from negative $1 million in the same time frame, sources added.
The company will also work on extending its revolving credit facility expiring March 2026, according to sources citing management on yesterday’s call. The call was the first to be conducted by new company leadership.
As of March 31, Ingenovis had a cash balance of approximately $82 million in addition to $30 million of availability under its undrawn revolver due 2026, according to sources. That was higher than $43 million of cash plus the revolver availability as of Dec. 31, 2024, the sources said.
The new AR instrument, which has a maximum capacity of $85 million, will provide $67 million of available liquidity to the staffing company, according to sources.
The nursing staffing company is working with Davis Polk and Perella Weinberg Partners, Octus, formerly Reorg, previously reported. An ad hoc group of creditors, advised by Gibson Dunn and Houlihan Lokey, is united by a cooperation agreement with about 86% of the first lien term loan, as reported.
Ingenovis’ first lien term loan due 2028 is indicated at 35/40, according to Solve. A list of CLO lenders to Ingenovis can be found in Octus’ CLO Database.
Ingenovis, sponsor Cornell Capital, Davis Polk, Gibson Dunn and Houlihan Lokey did not respond to requests for comment. Perella Weinberg Partners declined to comment.
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