Steward Health Care Secures Commitment for Additional $225 Million in Long-Term Financing to Support Its Restructuring

Today, Steward Health Care ("the Company"), a national fully integrated value-based healthcare system and the largest physician-led hospital operator in the United States, announced that it has secured additional financing commitments totaling $225 million from a group of Steward's secured FILO lenders, and will seek court approval of such financing later this week in the U.S. Bankruptcy Court for the Southern District of Texas.

"Since entering the Chapter 11 process, everything we have done has been to ensure that our hospitals, medical centers and physician's offices stay open, we continue to serve our patients, and maintain our commitment to employees," said Dr. Ralph de la Torre, Chief Executive Officer of Steward. "Our team, its advisors, and its independent Transformation Committee, oversaw an arduous and competitive process to review several attractive financing proposals. Securing this additional financing from a group of our secured lenders not only speaks to our asset value but more importantly provides Steward with a long runway to continue to stabilize our operations to the benefit of all of our stakeholders, including our physicians, employees, patients and vendors."

Additionally, the strategic marketing process for Steward's hospitals is designed to be flexible to ensure Steward can run an orderly and value-maximizing process that benefits all vendors and creditors, including with respect to the bidding process for the sale of Stewardship Health, which is advancing and is anticipated in due course pending regulatory review and approval.

The DIP financing facility provides the Company with flexibility to extend the marketing process if it maximizes value and is in the best interests of its stakeholders. This includes the Stewardship Health business and Steward's hospitals in Florida and Texas, to ensure the Company selects the best bidder for the Company's stakeholders (including employees, patients, and vendors) and maximizes value for creditors. The process also provides the opportunity to reorganize around certain assets of the Company if doing so maximizes value.

If you have questions about this announcement, you may call the information line created by the Company (888) 505-1257 (toll free) or (646) 893-5546 (international). You may also email questions to: [email protected]. Court filings and other information related to the restructuring proceedings are available at a website administered by the Company's claims agent, Kroll, at https://restructuring.ra.kroll.com/Steward.

Weil, Gotshal & Manges LLP is serving as the Company's legal counsel. AlixPartners, LLP is providing financial advisory services to the Company, and John Castellano of AlixPartners is serving as the Company's Chief Restructuring Officer. Lazard Frères & Co. LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc Capital Markets Inc. are providing investment banking services to the Company.

About Steward Health Care

Over a decade ago, Steward Health Care System emerged as a different kind of health care company designed to usher in a new era of wellness. One that provides our patients better, more proactive care at a sustainable cost, our providers unrivaled coordination of care, and our communities greater prosperity and stability.

As the country's largest physician-led, minority-owned, integrated health care system, our doctors can be certain that we share their interests and those of their patients. Together we are on a mission to revolutionize the way health care is delivered - creating healthier lives, thriving communities and a better world.

Based in Dallas, Steward currently operates more than 30 hospitals across Arizona, Arkansas, Florida, Louisiana, Massachusetts, Ohio, Pennsylvania, and Texas.