#United States #Downers Grove #ATI Physical Therapy #PIK Convertible Note #Healthcare Financing

ATI Physical Therapy: Strategic Financing Moves for Growth

On March 3, 2025, ATI Physical Therapy, Inc., a prominent name in outpatient physical therapy in the United States, announced the successful closure of a $26 million second lien PIK convertible note financing. This financing, featuring an 8% annual interest rate, stands as a pivotal move for the company, consolidating its financial base and enhancing its strategic initiatives.

Significance of the Financing

Sharon Vitti, the Chief Executive Officer of ATI, expressed the importance of this financing in bolstering the company’s financial health. "This new financing is a critical step in fortifying our financial foundation and positioning us to execute on our strategic vision," she stated. The funding is expected to help the company navigate future challenges and seize opportunities in a rapidly evolving healthcare landscape, especially amidst ongoing demands for physical therapy services.

The newly issued second lien PIK convertible notes, amounting to a total principal of $26 million, will mature on August 24, 2028. They carry a unique structure of quarterly payments made in kind, capitalizing the interest onto the outstanding principal balance. This structure enables ATI to maintain cash flow while managing its repayment obligations strategically.

About ATI Physical Therapy

ATI Physical Therapy operates over 850 locations across 24 states, making it one of the largest outpatient physical therapy providers in the nation. With a robust commitment to enhancing the quality of care for musculoskeletal issues, ATI aims to make every life an active life. The company provides a wide array of services, from preventive care in workplaces to specialized athletic training and online physical therapy through its platform, CONNECT™. With outcomes derived from over 3 million patient cases, ATI is dedicated to utilizing standardized clinical guidelines to ensure effective patient outcomes.

Growth Amid Challenges

As the healthcare sector faces numerous challenges, including rising costs, labor shortages, and increasing competition, ATI’s proactive approach in seeking financing reflects its intent to stay ahead in delivering high-quality patient care. The company acknowledges the importance of strategic financial management in ensuring its long-term sustainability and success.

ATIs financial maneuvers come at a critical juncture as demand for physical therapy services is projected to grow significantly. By securing this financing, the company aims to leverage its position in the market, reinforcing its capabilities to serve the needs of patients effectively and efficiently.

Future Outlook

Following this financing achievement, ATI Physical Therapy is poised to implement its strategic vision and enhance its operational capabilities. The company remains focused on cultivating relationships with patients, healthcare professionals, and insurers to ensure comprehensive service delivery and address the growing demand for physical therapy.

For more details, interested parties can access ATI's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission, which elaborates on this financing and other material developments.

In conclusion, ATI Physical Therapy's recent financing reflects its strategic efforts to strengthen its financial standing and showcases its commitment to advancing healthcare services. The healthcare industry is watching closely as ATI executes on its plans, ultimately aiming to enhance patient outcomes and expand its influence in the physical therapy sector.