DORAL, Fla. - NeueHealth, Inc. (NYSE: NEUE), a healthcare company focused on value-driven care, announced today a secured loan facility agreement with Hercules Capital, Inc. (NYSE: NYSE:HTGC) for up to $150 million. The financing is aimed at bolstering the company's capacity to expand its care model and support strategic initiatives.
According to Mike Mikan, President and CEO of NeueHealth, the loan will help the company continue to provide personalized care that is both accessible and affordable. Hercules Capital expressed confidence in NeueHealth's potential to deliver value to various stakeholders in the healthcare sector, including payors, providers, and consumers.
The new capital is expected to strengthen NeueHealth's balance sheet, providing a foundation for sustainable growth as the industry shifts towards value-based care. NeueHealth currently delivers clinical care to over 460,000 health consumers and collaborates with more than 3,000 affiliated providers. The company also offers technology and services to assist independent providers and medical groups in performance-based arrangements.
Details of the financing and its key terms will be disclosed in a Form 8-K to be filed with the Securities and Exchange Commission. Moelis (NYSE:MC) & Company LLC served as the exclusive placement agent and capital markets advisor for NeueHealth, with legal advice provided by Simpson Thacher & Bartlett LLP
The information in this article is based on a press release statement from NeueHealth.
InvestingPro Insights
As NeueHealth, Inc. (NYSE: NEUE) secures a substantial loan to fuel its expansion and strategic initiatives, it's essential to consider the financial health and market performance of the companies involved. Hercules Capital, Inc. (NYSE: HTGC), the provider of the loan, shows a robust market presence with an adjusted market capitalization of $288.19 million. Despite recent market fluctuations, Hercules Capital's year-to-date price total return reflects a strong upward trend of 17.71%, indicating investor confidence and a potentially favorable market response to its strategic moves, such as the loan agreement with NeueHealth.
Investors examining Hercules Capital's financial metrics will note a significant revenue of $1,047.16 million over the last twelve months as of Q1 2024. However, it's important to acknowledge the company's negative revenue growth during the same period, at -13.59%. This could suggest challenges in the market or within the company's operations that may be of interest to stakeholders. Additionally, the company's price to book ratio stands at 0.48, which could signal that the stock might be undervalued relative to its assets.
For those looking deeper into Hercules Capital's financials, InvestingPro offers additional insights. Subscribers can access InvestingPro Tips to better understand the implications of these metrics on the company's future performance. For instance, the InvestingPro Fair Value estimate stands at $1.9, which might indicate potential for growth compared to the previous close price of $1.57. Subscribers can use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to comprehensive analysis and more InvestingPro Tips that could guide investment decisions.
With the next earnings date set for July 18, 2024, investors and analysts will be watching closely to see how this loan agreement impacts NeueHealth's financial trajectory and whether Hercules Capital's investment will yield the expected returns.
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