Thread regarding Change Healthcare layoffs

IPO!

An IPO of $100million for a company that was said to be valued at multiple billions, doesn’t seem too sure about itself. Testing the waters are we? Change’s LinkedIn and website are surprisingly quiet about the news.

From an article:

“CHNG appears to have little or no topline revenue growth, increasing sales expenses, and a heavy debt load.”

“Change Healthcare Inc. intends to use all of the net proceeds from this offering (including from any exercise by the underwriters of their option to purchase additional shares of common stock) to purchase a number of newly issued LLC Units from the Joint Venture that is equivalent to the number of shares of common stock that we offer and sell in this offering,[...] The Joint Venture, in turn, expects to use these proceeds to repay outstanding indebtedness under the Term Loan Facility under our Senior Secured Credit Facilities...“

Expect more layoffs soon folks. An IPO just to payoff a term loan while MCK and Blackstone sit by and breathe down Neil’s neck waiting to utter the words “You’re fires”. Lovely. They’ll have to cut those expenses somewhere to make a (somewhat) successful IPO to make it more attractive. Since the products are terrible and no new sales growth, y’all better get that blockchained AI’d machine learninged chain of blocks buzzword buzzword to start sellin... ship’s a sinkin

by
| 2267 views | |
Post ID: @OP+YbezCDK

6 replies (most recent on top)

I wished McK tried to find a better deal for the thousands of employees that they said they cared so much for.

Partnering with a company that was 3 billion in debt? why? Shelled out over 1.2 billion for that 3 billion in debt for old CHC? Shameful.

Let us form a New Organization (keeping the name) - have them pay out CHC/MCK 3 billion total. Now this new Co is sitting with 6 billion in debt. Seems like a selfish Exec Money grab scam. These hard working employees have families and deserved better.

by
|
Post ID: @aybw+YbezCDK

I think it is more like Wipro can purchase CHNG for pennies on the dollar. MCK just wants their money back on the deal.

by
|
Post ID: @9nop+YbezCDK

And after the IPO MCK can absorb CHC for pennies on the dollar.

by
|
Post ID: @8prz+YbezCDK

Perhaps it's a way to let McKesson realize the value of their holdings in cash (and get out). And they're definitely testing the waters. Pretty bad IPO... not really exciting for them.

by
|
Post ID: @6ger+YbezCDK

The dumpster fire started years ago under McKesson before the creation of Change. The only difference now is that fire is smaller due to a much lower headcount.

by
|
Post ID: @4bjw+YbezCDK

You speak nothing but #truefacts! More robbing Peter to pay Paul. The Ipo is a bandaid for the dumpster fire that is Change.

by
|
Post ID: @mqo+YbezCDK

Post a reply

: