Oak Street Health details exposure to Silicon Valley Bank

By Mary-Katherine Stinson

Lexington, Ky., March 13 – Oak Street Health, Inc. gave details about the company’s relationship with Silicon Valley Bank in an 8-K filing filed with the Securities and Exchange Commission.

Silicon Valley was a lender under the company’s $300 million term loan facility with the bank being committed to funding 20% of the loan. To date, the company has drawn down $75 million under the term loan credit facility. Of the remaining undrawn $225 million, SVB was committed to providing $45 million.

The Hercules Capital portion of the loan is unaffected.

However, the company states it is unclear if the company will be able to draw down SVB’s remaining portion of the term loan commitment.

SVB was also a provider of commercial banking and treasury management services for Oak Street. The company maintained less than a quarter of its cash, cash equivalents and marketable debt securities at SVB.

The company expects to have full access to its funds held by SVB on March 13 after the March 12 announcement by the U.S. Treasury that all SVB depositors would have access to their funds on that date.

Based in Chicago, Oak Street Health is a network of primary care centers for older adults on Medicare.

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