Tuesday, September 24, 2019
Catasys Finds $45M In Debt Financing For Mental Health Efforts
Los Angeles-based Catasys, a provider of technology that uses artificial intelligence (AI) to predict, identify, and treat mental issues among health plans members, has raised $45M in a debt financing round, the company said on Tuesday. The financing came from Goldman Sachs. According to Catasys, it provides 7 of the 8 largest U.S. health plans, including Aetna and Humana, to identify members with untreated behavioral health conditions which worsen chronic medical disease. The company--led by founder and CEO Terren Peizer--said the funding will go to support accelerating growth at the company. The company said the financing consists 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. The company says the new debt funding will go to retire existing debt, plus for new contracts and expansion, additional technology enhancements, development of new products, and other efforts.