Company: PIII
Filing Date: 2025-06-03
Form Type: 8-K
Source: 0001628280-25-029146
Chunk: 1

Company: P3 Health Partners Inc.
Filing Date: 2025-06-03
Form: 8-K
Item: Item 1.01
Chunk 1
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 the payment of the back-end fee described below; provided that prepayments must be in increments of at least $1.5 million. The Promissory Note provides for mandatory prepayments with the proceeds of certain asset sales, and VBC 5 has the right to demand payment in full upon (i) certain “ Changes of Control” and (ii) certain “ Qualified Financings” (each as defined in the Promissory Note).

The Promissory Note restricts P3 LLC’s ability and the ability of its subsidiaries to, among other things, incur indebtedness and liens, and make investments and restricted payments. The maturity date may be accelerated as a remedy under certain default provisions in the Promissory Note, or if a mandatory prepayment event occurs.

Pursuant to the Promissory Note, P3 LLC will pay VBC 5 on the Effective Date an up-front fee of 1.5% of the maximum draw amount. In addition, P3 LLC will pay VBC 5 a back-end fee at the time the loans issued under the Promissory Note are repaid as follows: (i) if repaid prior to June 30, 2025, 2.25% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date; (ii) if repaid from July 1, 2025 through September 30, 2025, 4.5% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date; (iii) if repaid from October 1, 2025 through December 31, 2025, 6.75% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date; and (iv) if repaid after December 31, 2025 or later, 9.0% of the aggregate principal amount of the loans advanced to P3 LLC on or prior to such date.

P3 LLC intends to use the proceeds of the Promissory Note to fund the Company’s ongoing working capital requirements.

Warrants

In connection with the Promissory Note, on May 29, 2025, P3 LLC, the Company and VBC 5 entered into a Warrant Agreement (the “ Warrant Agreement”). Pursuant to the Warrant Agreement, P3 LLC issued Warrants to VBC 4 to purchase 1,430,281 shares of Class A Common Stock