10:54 AM EST, 01/10/2025 (MT Newswires) -- ModivCare ( MODV ) said Friday it has secured $105 million in additional financing

from stakeholders across its capital structure to provide liquidity for its strategic initiatives.

The financing comes from a $75 million incremental term loan under its credit agreement and, subject to a stockholder vote, $30 million of new Second Lien Senior Secured PIK Toggle Notes due 2029, the company said.

The firm also said revolving lenders have agreed to amend its credit agreement to provide covenant relief, among other things, as part of the deal.

Modivcare ( MODV ) said it has appointed a chief transformation officer and expanded its board by three independent directors. It has also engaged advisors to conduct a strategic review of its assets to maximize shareholder value.

The company said it has withdrawn its revenue and adjusted EBITDA guidance for fiscal year 2024 and adjusted EBITDA growth for fiscal year 2025 due to changes in the business and overall environment.

Shares of the company were down over 35% in recent trading.

Price: 8.01, Change: -4.49, Percent Change: -35.91