Catasys Announces $45 Million Debt Financing Commitment from Goldman Sachs to Support Accelerating Growth

Catasys, Inc., a leading AI and technology-enabled healthcare company, has entered into a financing agreement with Goldman Sachs Specialty Lending Group, L.P. involving the placement of Senior Secured Notes due 2024 pursuant to a committed purchase of up to $45 million, comprised of a $35 million initial purchase and up to $10 million in additional issuances.

Catasys intends to use the proceeds to retire the Company’s existing credit facilities, continue scaling new contracts and expansions, invest in additional technology enhancements, develop new products including the Catasys PRE™ platform, and provide excess capital for growth.

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Mr. Terren Peizer, Chairman and CEO of Catasys, stated, “We are pleased to have closed this financing with Goldman Sachs in support of our growth initiatives without significant dilution to shareholders. Our leadership team worked closely with Goldman Sachs over the past few months and are thrilled to have the bank as a new financing provider, which may result in future funding commitments. Given current and anticipated growth of eligible members of our outreach pool, we anticipate the proceeds from this financing will enable Catasys to achieve positive cash flow as we continue working to execute on our program and platform expansions and technological advancements in the remainder of 2019 and beyond. Given our capital-light model, we remain optimistic that our growth can be funded by access to additional debt capital, if necessary, and internally generated cash flow.”

Catasys, Inc. is a leading AI and technology-enabled healthcare company whose mission is to help improve the health and save the lives of as many people as possible. Its Catasys PRE (Predict-Recommend-Engage) platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages people who aren’t getting the care they need. By combining predictive analytics with human engagement, Catasys delivers improved member health and validated outcomes and savings to healthcare payers.

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Catasys’ integrated, technology-enabled OnTrak solution, a critical component of the Catasys PRE platform, is designed to treat members with behavioral conditions that cause or exacerbate chronic medical conditions such as diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure, which result in high medical costs.

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