Advised ad hoc group of lenders in restructuring of LTAC hospital operator

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Advised ad hoc group of lenders in restructuring of LTAC hospital operator

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Stout served as a financial advisor to an ad hoc group of lenders in the restructuring of LifeCare Holdings, LLC (“LifeCare”), a privately owned operator of long-term acute-care (LTAC) hospitals and home health services businesses.

LifeCare Health Partners, headquartered in Plano, TX, is a leading healthcare services provider offering a variety of post-acute services, including transitional care, inpatient and outpatient behavioral health treatment, and home-based care. LifeCare was materially affected by the phase-in of a Medicare reimbursement change that dramatically impacted the LTAC industry. As a consequence, the ad hoc group of lenders retained Stout to assist them in evaluating their strategic alternatives. Ultimately, 100% of the lenders signed a restructuring support agreement to amend their existing credit agreement and extend the loan maturity from 2018 to 2021.