Alignment Healthcare Secures $200M Credit Facility

TL;DR

Alignment Healthcare just got a $200M credit line, maturing in 2029. Looks like they're shoring up cash.

AI Summary

On June 14, 2024, Alignment Healthcare, Inc. filed an 8-K report detailing the creation of a direct financial obligation. The company entered into a credit agreement, establishing a revolving credit facility with a maximum principal amount of $200 million. This facility is set to mature on June 14, 2029.

Why It Matters

This new credit facility provides Alignment Healthcare with significant financial flexibility and access to capital, which can be used for operational needs, strategic initiatives, or to manage working capital.

Risk Assessment

Risk Level: low — The filing reports the establishment of a standard credit facility, which is a common financial tool and does not inherently indicate distress or unusual risk.

Key Numbers

• $200.0M — Revolving Credit Facility (Maximum principal amount available to Alignment Healthcare.)
• 5 years — Maturity Date (The credit facility is set to mature on June 14, 2029.)

Key Players & Entities

• Alignment Healthcare, Inc. (company) — Registrant
• $200 million (dollar_amount) — Maximum principal amount of revolving credit facility
• June 14, 2024 (date) — Date of report and earliest event
• June 14, 2029 (date) — Maturity date of the credit facility

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share ALHC The NASDAQ Stock Market
• $250.0 million — an aggregate principal amount of up to $250.0 million in a series of term loans (the "Term Lo
• $165.0 million — rrower received an initial Term Loan of $165.0 million on the Effective Date and had the optio
• $85.0 million — he option to borrow up to an additional $85.0 million of Term Loans (such additional Term Loa
• $50.0 million — gate available Delayed Draw Term Loans, $50.0 million was available only until June 30, 2024.
• $49.5 million — ting in net proceeds to the Borrower of $49.5 million. The Borrower opted to borrow the Funde

Filing Documents

• alhc-20240614.htm (8-K) — 23KB
• 0001628280-24-028334.txt ( ) — 147KB
• alhc-20240614.xsd (EX-101.SCH) — 2KB
• alhc-20240614_lab.xml (EX-101.LAB) — 22KB
• alhc-20240614_pre.xml (EX-101.PRE) — 13KB
• alhc-20240614_htm.xml (XML) — 3KB

From the Filing

alhc-20240614 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 8-K _________________ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): June 14, 2024 _______________________________ ALIGNMENT HEALTHCARE, INC. (Exact name of registrant as specified in its charter) _______________________________ Delaware 001-40295 46-5596242 (State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 1100 W. Town and Country Road , Suite 1600 Orange , California 92868 (Address of Principal Executive Offices) (Zip Code) ( 844 ) 310-2247 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) _______________________________ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share ALHC The NASDAQ Stock Market LLC Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company o If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. As previously reported, on September 2, 2022 (the "Effective Date"), Alignment Healthcare, Inc. (the "Company"), Alignment Healthcare USA, LLC, an indirect subsidiary of the Company (the "Borrower") and certain other subsidiaries of the Company entered into a term loan agreement (the "Loan Agreement") with Oxford Finance LLC ("Oxford") and the other lenders from time to time party thereto (collectively, the "Lenders"), pursuant to which the Lenders have agreed to lend the Borrower an aggregate principal amount of up to $250.0 million in a series of term loans (the "Term Loans"). The Borrower received an initial Term Loan of $165.0 million on the Effective Date and had the option to borrow up to an additional $85.0 million of Term Loans (such additional Term Loans, the "Delayed Draw Term Loans"). Of the aggregate available Delayed Draw Term Loans, $50.0 million was available only until June 30, 2024. On June 14, 2024, the Borrower borrowed $50.0 million in aggregate principal amount of Delayed Draw Term Loans (the "Funded DDTL Amount"), resulting in net proceeds to the Borrower of $49.5 million. The Borrower opted to borrow the Funded DDTL Amount prior to the expiration date of June 30, 2024 to avoid losing access to the capital, to enhance the Company's balance sheet and to provide for future flexibility. Borrowings under the Loan Agreement bear interest at a variable rate equal to (i) the secured overnight financing rate administered by the Federal Reserve Bank of New York for a one-month tenor, subject to a floor of 1.00%, plus (ii) an applicable margin of 6.50%. Additional details regarding the Loan Agreement are contained in Item 1.01 of the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on September 6, 2022 and are incorporated herein by reference. The foregoing discussion of the terms of the Loan Agreement is not complete and is subject to, and qualified in its entirety by reference to, the Loan Agreement filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on November 3, 2022. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Alignment Healthcare, Inc. Date: June 14, 2024 By: /s/ Christopher J. Joyce Christopher J. Joyce Chief Legal and Administrative Officer

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View this 8-K filing on SEC EDGAR