Knoxville, Tenn.-based physician staffing company TeamHealth is evaluating recommendations from two of its largest creditors to repay over $1 billion in debt due early next year, according to The Wall Street Journal.
Pacific Investment Management Co., or Pimco, which is the largest creditor, wants to swap the upcoming loan repayments for new debt backed by some of the company's assets, according to the report. If TeamHealth were then to go bankrupt, Pimco would have the initial right to such assets.
Meanwhile, Ares Management, which holds hundreds of millions of dollars of TeamHealth bonds, has requested private equity owner Blackstone to kick in about $250 million of new money for TeamHealth, the report said.
"TeamHealth is well capitalized with significant equity cushion in our capital structure, a collaborative lending group, and access to available capital to fund our growth and refinance any upcoming maturities," the physician staffing company said in a statement. "Although market conditions have increased the cost of extending our maturing credit, our financial position remains strong. Our success in litigating and arbitrating unfair payments from managed care have ensured the strength of our financial position. Most importantly, we are positioned to continue to grow our market share as we remain focused on providing the highest level of care to our patients and one another at the front line of medicine."