In December, KKR said it was exploring leading a recapitalization that would restructure Quorum’s debt load. In a Dec. 2 letter to Quorum’s board of directors, KKR mentioned several terms of the potential transaction, including the possibility of taking Quorum private, “partly through a buy-out of the public shares held by minority holders at a price of $1.00 per share.”
On March 10, KKR said a buyout is unlikely and talks are now focused on “a reorganization … in which no assurances can be given that shareholders of … common stock will receive any consideration,” according to the Nashville Post.
Quorum responded to the update from KKR in a statement released March 11.
“The company, together with its financial and legal advisors, continues to engage in constructive discussions with KKR and other debt holders regarding a potential recapitalization or financial reorganization transaction,” the statement reads. “The company’s objective is to reach a consensual agreement that enables it to reduce its annual interest expense, enhance its operations and invest in future growth.”
The update from KKR took a toll on Quorum’s share price, according to the Nashville Post. The company’s shares closed March 11 at 48 cents, down from nearly $1.10 the day prior. Shares closed March 12 at 45 cents and March 13 at 53 cents.
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