NantHealth settles with Highbridge, majority stockholder on convertibles

Chicago, Dec. 21 – NantHealth Inc. reached a settlement with Highbridge Capital Management, LLC and affiliated funds as holders of $75 million of the company’s 4.5% convertibles senior notes due 2026, according to an 8-K filing with the Securities and Exchange Commission.

Highbridge attempted to exercise its repurchase right on Oct. 18.

To settle, NantHealth is borrowing $12.5 million in the form a new first-lien term loan from Nant Capital, LLC – the holder of the remaining portion of the $137.5 million of convertible notes issued on April 13, 2021.

The cash from Nant Capital will be used to pay all of Highbridge’s claims for accrued and unpaid interest on existing senior secured term loans from Hihgbridge, accrued and unpaid interest on default interest on the notes and to redeem a portion of the outstanding convertibles at par in cash.

All $75 million of Highbridge’s notes are being redeemed, though, through either a $10 million cash payment or a $68 million roll-up into a senior secured exchange term loan.

The company amended the credit agreement and aligned the terms with the roll-up loan.

Interest on the loans will be 8.5%, instead of 13%. The maturity date has been extended to Dec. 15, 2025.

There is additional pledged collateral for Nant Capital and there is a reduction in the requirement minimum liquidity covenant.

Nant Capital is also lending $7.5 million in tranche A financing and $17.5 million in tranche B financing to fund the first six months of the company’s operating plan. The format is a subordinated note purchase agreement as a promissory note. Tranche B will be funded before the end of 2023.

Proceeds from the tranche B loan will be applied to the Highbridge roll-up loan. The subordinated notes bear interest at 8.5% and mature Dec. 31, 2026.

Settlement with Highbridge is planned for Dec. 22.

NantHealth is a Winterville, N.C..-based company focused on developing and marketing a range of health care solutions.

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