To help seal the deal financially and repay existing borrowings, KKR and Veritas are reportedly in talks for debt of $5 billion to $6 billion with both Wall Street banks and private credit funds, the publication reported. If approved, this could make the direct loan the largest on record.
The two firms are seeking a private loan featuring a “payment-in-kind” structure, allowing for interest with more debt on the entire financing to be paid by KKR, according to Bloomberg. This is Veritas’ second attempt to sell part of Cotiviti this year, after talks with the Carlyle Group ended for a planned $15 billion buyout April 12.
Discussions between the two firms come as the Justice Department, Federal Trade Commission and HHS plan to conduct a federal inquiry into “corporate greed in healthcare.” The goal of the inquiry is to understand how private equity and corporations are affecting healthcare access and cost, with the information collected eventually planned for aiding the development of future regulations and enforcement prioritization.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.