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