Medical Solutions has wrapped up a fully consensual liability management exercise with its lenders, months after launching a multi-tiered exchange for its term loans, said three sources familiar with the matter.

The transaction bolsters the Centerbridge-backed healthcare staffing company’s liquidity and extends the maturities of its term loans by two years.

The deal garnered almost full participation from lenders, according to the sources.

Lenders provided fresh capital via a USD 125m first out term loan due 2030, the sources said. They further agreed to swap their existing first and second lien term loans at a discount into a mix of new first out and second out term loans due 2030 and a third out term loan due 2031.

In April, Medical Solutions reached a deal with a steering committee for an ad hoc group of lenders after months of negotiations, as reported. The company then worked to line up support from other members of the group organized under a cooperation agreement as well as lenders not in the co-op.

Initial terms of the deal entailed steerco members swapping their holdings into a combination of the new loans at around 90 cents on the dollar, while non-steerco members in the co-op could swap in the 70s, Debtwire previously reported.

Some market participants viewed the LME as aggressive since in the initial proposal steerco received much better terms than other lenders, as reported.

Multi-tiered LME deals have been common in the market with hold outs feeling pressure to participate even if they receive worse terms than other lenders. Creditors who decline to participate risk being left holding stripped paper that ranks junior to new paper in the reconstituted capital structure.

Medical Solutions worked with Kirkland & Ellis and Evercore as advisors, as reported. An ad hoc group of lenders was advised by Gibson Dunn, as reported. A minority group of lenders was represented by Cadwalader.

The majority group organized in 2024 amid persistent financial pressures at the company backed by La Caisse along with Centerbridge, Debtwire reported at the time.

Medical Solutions’ “steerco” USD 1.24bn SOFR+ 350bps first lien term loan due 2028 was quoted 70/72 today, according to Markit. The non-steerco term loan was quoted 9.8/12.6 today, down one point from 19 June. The USD 270m SOFR+ 700bps second lien term loan due 2029 was quoted 6/10.5.

The company, Centerbridge and Gibson Dunn didn’t respond to requests for comment. La Caisse declined to comment.