Sound Physicians Announces Transformative Transaction to Increase Liquidity and Financial Flexibility; Aims to Drive Growth as the Physician Services Partner of Choice

Proactively bolsters liquidity with comprehensive debt restructuring and $124 million of new capital; Enters into transaction with overwhelming majority of key partners in capital structure; Momentum follows recent leadership appointments as Company builds a world-class leadership team across key disciplines to advance strategic initiatives.

Sound Physicians (the “Company"), a leading provider of physician services and value-based care within the acute setting, today announced a successful refinancing with its lenders to provide access to an additional $124 million of capital (the “Transaction”), which will substantially reinforce the Company’s financial position and bolster the Company’s operations as one of the largest providers of physician services in the U.S. The new capital will provide substantial runway for the Company to invest in operations and innovation, drive growth, and enhance physician support.

In addition to the new money, the Transaction provides material discount on the pre-Transaction indebtedness and an extension of maturities of the Company’s loan facilities until 2028, at the earliest — a strong signal that Sound Physicians’ key financial partners continue to support the Company’s long-term growth and vision. 

The Company reached agreement with lenders representing approximately 85% of the existing first-lien secured debt (including 100% of the existing revolving lenders) and approximately 89% of the existing second-lien secured debt, and with its equity holders, including Summit Partners. The Company is now soliciting its remaining lenders to participate in the Transaction prior to closing and these discussions are ongoing.

“We are pleased to take this important step toward strengthening our balance sheet, a key component of Sound Physicians’ growth and transformation,” said Jeff Alter, CEO for Sound Physicians. “As one of the most respected medical groups in the U.S. and the practice of choice for over 4,000 clinicians, we are now better placed to meet the needs of our hospital partners and clinicians.

“With additional capital, financial flexibility and runway, a strengthened and experienced leadership team, and the support of our financial partners, Sound Physicians is poised to be an industry leader and continue growing into the coming years,” Alter said. 

About Sound Physicians™

As a physician-founded and led multispecialty medical group, our promise is to bring better to the bedside with our more than 4,000 physicians, advanced practice providers, CRNAs, and nurses practicing community-based medicine in 400-plus hospitals across 45 states. With specialties in emergency and hospital medicine, critical care, anesthesia, and telemedicine, our partners have benefited from Sound’s 23 years of experience innovating and leading through an ever-changing healthcare landscape — with patients at the center of our universe.

Source: Sound Physicians

About Sound Physicians

Sound Physicians is a national, multi-specialty medical group made up of more than 4,000 physicians, advanced practice providers, CRNAs, and nurses who practice in 400-plus hospitals across 45 states.

Sound Physicians
1498 Pacific Ave. , #500
Tacoma, Washington


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