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ATI Physical Therapy, Inc., a provider of outpatient rehabilitation services, has entered into several amended financial agreements and issued new notes, according to a recent SEC filing. The company, which was previously known as Fortress Value Acquisition Corp (NYSE:MP). II, operates under the industrial classification of nursing and personal care facilities.
With a current market capitalization of just $3.08 million and a stock price of $0.73, the company has seen its value decline significantly, with a year-to-date return of -88.17%. InvestingPro data reveals the company generates substantial revenue of $728.11 million in the last twelve months.
On Monday, ATI Physical Therapy finalized amendments to its existing Note Purchase Agreement, which originally took place on April 17, 2023. The amendments include the issuance of new second lien PIK notes totaling up to $6 million to certain purchasers.
These notes are set to mature on August 24, 2028, with interest rates starting at 12% per annum and increasing to 17% after 180 days from the pre-funding date. Notably, these notes are not convertible into ATI Physical Therapy's common stock.
Moreover, the company has amended its Credit Agreement initially dated April 24, 2022. This agreement involved senior secured term loans of $500 million and revolving credit commitments of $50 million.
The amendments facilitate the entry into the Escrow Agreement and Note Purchase Agreement Amendment, enabling a tender offer statement and related transactions. According to InvestingPro data, ATI carries total debt of $772.83 million, while maintaining a gross profit margin of 44.14% and generating EBITDA of $28.8 million in the last twelve months.
Moreover, ATI Physical Therapy has also adopted amendments to its First Amended and Restated Certificate of Designation of Series A Senior Preferred Stock, allowing for the issuance of a tender offer statement and its associated transactions.
The amendments come after the New York Stock Exchange delisted ATI Physical Therapy's Class A Common Stock on December 3, 2024, with the stock currently trading on the OTC Pink Sheets under the ticker "ATIP." The company's warrants trade under the ticker "ATIPW."
The filing highlighted several forward-looking statements regarding the company's future, including concerns about its ability to continue as a going concern, reliance on government and third-party payors, and risks associated with maintaining compliance with federal and state laws and regulations.
For deeper insights into ATI's financial health and detailed analysis, including exclusive ProTips and comprehensive financial metrics, investors can access additional research through InvestingPro. The company also acknowledged the potential impact of public health crises, such as the COVID-19 pandemic, on its business operations.
ATI Physical Therapy emphasized that the information presented in the SEC filing is based on current expectations and assumptions, which may not prove accurate, and that actual results could differ materially from those anticipated in any forward-looking statements.
The detailed information in this article is based on the SEC filing and does not include any subjective assessment or speculation on the part of the reporter.
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