Accendra Health Announces Early Results of Exchange Offers and Consent Solicitations
Key Highlights
- Accendra Health, Inc. (NYSE: ACH) has announced early results for its offers to exchange its outstanding 4.500% Senior Notes due 2029 and 6.625% Senior Notes due 2030 (collectively, the “Existing Notes”).
- Eligible holders of the 2029 Notes participating in the New Money Notes Issuance can exchange for newly issued 9.000% Senior Secured First Lien Notes due 2032 and 9.750% Senior Secured Second Lien Notes due 2033. Other eligible holders can exchange for Second Lien Notes.
- As of June 9, 2026, the company received valid and unwithdrawn tenders representing approximately 99.9% of the aggregate principal amount of 2029 Notes outstanding and 99.2% of the 2030 Notes outstanding.
- Accendra Health has entered into supplemental indentures to implement significant amendments to the covenants and events of default in the Existing Notes, effective as of the Early Settlement Date.
- The company also offered \$326.25 million in newly issued First Lien Notes for cash as part of the New Money Notes Issuance.
- The offering is being made only to qualified institutional buyers and certain non-U.S. persons under applicable exemptions from registration.
Details of the Exchange Offers and Consent Solicitations
Accendra Health’s exchange offers are a key step in restructuring its capital structure to improve financial flexibility. Holders of the 2029 Notes that participate in the New Money Notes Issuance are eligible for a combination of new First Lien and Second Lien Notes, carrying significantly higher interest rates (9.000% and 9.750%, respectively) compared to the existing notes. Holders of 2029 Notes who do not participate in the New Money Notes Issuance and all holders of 2030 Notes can exchange their notes for the Second Lien Notes.
The company also launched concurrent consent solicitations to amend the indentures governing the Existing Notes. The proposed amendments, which have now received the requisite consents, will eliminate substantially all affirmative and negative covenants, certain events of default, and modify or remove other provisions—a significant change that materially alters the rights of noteholders.
Participation Breakdown and Settlement Details
- Aggregate principal amounts tendered: \$478.3 million of 2029 Notes and \$547.9 million of 2030 Notes.
- Of the 2029 Notes tendered:
- Approximately \$124.0 million by New Money Participants (subject to payment by the Funding Date).
- About \$332.0 million by Backstop Participants (under the Commitment Agreement).
- Roughly \$22.3 million by Other Eligible Participants.
- The Backstop Parties have committed to purchase their pro rata share of \$261.0 million of New Money First Lien Notes, and up to an additional \$65.25 million if not purchased by other eligible holders.
- The early settlement date for all notes tendered by the Early Exchange Time is expected to be June 15, 2026. The final expiration of the offer is now extended to June 23, 2026, with the late settlement date expected on June 25, 2026.
- Withdrawal rights for tenders and consents expired as of 5:00 P.M. on June 9, 2026; tenders are now irrevocable unless otherwise permitted by law or company discretion.
Potential Price-Sensitive Information for Shareholders
- Nearly all outstanding notes have been tendered, indicating strong support from creditors and significantly reducing near-term refinancing risk.
- The amendments to the indentures will remove most covenants and default events, enhancing the company’s flexibility but also reducing bondholder protections—this may be viewed as a credit negative by some investors.
- The new notes carry much higher interest rates (9.000% and 9.750%), which will increase the company’s interest expense going forward. This could affect future earnings and cash flows, and may be perceived as a necessary but costly move to secure liquidity and extend maturities.
- The successful completion of the exchange and new money issuance is critical for the company’s ongoing financial health and market perception. Any failure or delay could negatively impact the share price.
Other Important Information
- The new notes have not been registered under the Securities Act and are only available to qualified institutional buyers and certain non-U.S. persons.
- Participants must tender all existing notes they hold through DTC’s ATOP system.
- The company’s obligations under the exchange and new money issuance are subject to the terms and conditions outlined in the confidential offering memorandum.
About Accendra Health
Accendra Health, Inc. (NYSE: ACH) is a leading nationwide provider of products, technology, and services supporting health beyond the hospital, with a focus on chronic and complex conditions. The company operates under the Apria and Byram brands.
Disclaimer
This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should refer to the official filings and offering documents for complete details and should consult with their financial advisor before making any investment decisions. The information provided herein is based on a company press release and may contain forward-looking statements subject to risks and uncertainties.
