Lenders back Drive DeVilbiss Healthcare as company set to receive $35 million in new capital
Following reports that Drive DeVilbiss Healthcare in the US was in talks with senior lenders to restructure its $600 million debt ahead of “an expected liquidity crunch,” the mobility giant has confirmed it has agreed on a ‘consensual liquidity enhancing transaction.’
The global supplier of a vast range of mobility products verified it has agreed in principle to receive $35 million in new capital, alongside a reduction in cash debt service obligations from its current lenders.
Last week, the Wall Street Journal reported that Drive DeVilbiss Healthcare’s North American business was working to reach an out-of-court deal to restructure its debt to avoid filing for bankruptcy.
According to the company, the new transaction secured broad support across Drive’s capital structure, including a substantial majority of Drive’s first and second lien lenders and new capital from the company’s primary equity holders.
Bob Gilligan, Chief Executive Officer of Drive DeVilbiss Healthcare, commented: “We are pleased with the strong demonstration of support that our stakeholders have shown to our business and strategic vision.
“The new capital and associated capital structure enhancements will enable Drive to continue to invest in improving our infrastructure to deliver high-quality service to our customers, while also providing an additional runway to execute on our business plan supporting continued growth.”
Headquartered in Port Washington, New York, Drive DeVilbiss Healthcare manufactures and distributes a complete line of medical products, including mobility products, respiratory and sleep products, beds, wheelchairs, sleep surfaces and pressure prevention products, powerchairs and more.
Currently, the company has corporate offices, manufacturing facilities and distribution facilities located throughout the United States, Canada, the United Kingdom, France, Germany, China, Hong Kong, Romania, Australia, the Netherlands and India.
