P3 Health Partners amends term loan agreement, extends maturity and adjusts interest rates

P3 Health Partners Inc. (NASDAQ:PIII), a healthcare company with annual revenue of $1.46 billion and current market capitalization of approximately $60 million, announced Friday that its subsidiary, P3 Health Group, LLC, entered into a Tenth Amendment to its Term Loan Agreement with CRG Servicing LLC, dated November 19, 2020. The amendment, signed Wednesday, modifies several key terms of the existing loan. According to InvestingPro data, the company’s financial health metrics indicate significant short-term liquidity challenges, with current obligations exceeding liquid assets.

Under the new agreement, the interest-only payment period is extended to September 30, 2026, and the maturity date is pushed back to December 31, 2027. Principal payments will now be set at a fixed $5 million per payment date. This restructuring comes as the company manages a total debt burden of $192.72 million, with a concerning current ratio of 0.31.

The amendment also changes the interest rate structure. The rate remains at 12% through December 31, 2025, and will increase to 15% thereafter.

Additionally, the amendment introduces two separate Paid In-Kind (PIK) interest periods, replacing the previous single PIK period. The first PIK period, from the original loan closing through December 31, 2024, allows the company to pay 8% in cash and 4% as PIK, which is added to the principal. The second PIK period, from January 1, 2026, through December 31, 2027, permits 12% in cash payments plus 3% as PIK.

The agreement also updates board observation rights for lender representatives.

The amendment includes standard conditions for effectiveness and a reaffirmation of existing loan obligations. This information is based on a press release statement included in the company’s filing with the Securities and Exchange Commission.

In other recent news, P3 Health Partners reported its Q2 2025 earnings, with revenue reaching $356 million, surpassing the forecasted $349.73 million. This revenue beat highlights the company’s ability to exceed analyst expectations. Additionally, Lake Street Capital Markets initiated coverage on P3 Health Partners with a Buy rating and set a price target of $20.00. The firm cited P3’s physician-led, patient-centric care model as a positive factor in its outlook. These developments indicate significant interest in P3 Health Partners from the investment community. Despite the positive earnings report, investor concerns remain about the company’s financial health and future outlook. The stock’s performance was not covered in these updates. These recent developments provide insight into P3 Health Partners’ current market position and future prospects as seen by analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.