Company: PIII
Filing Date: 2025-02-18
Form Type: 8-K
Source: 0001628280-25-005930
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Company: P3 Health Partners Inc.
Filing Date: 2025-02-18
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

On February 13, 2025 (the “ Effective Date”), P3 Health Group, LLC (“ P3 LLC”), a subsidiary of P3 Health Partners Inc. (the “ Company”), entered into a financing transaction with VBC Growth SPV 4, LLC (“ VBC 4”), consisting of an unsecured promissory note (the “ Promissory Note”) and warrants (the “ Warrants”) to purchase shares of Class A Common Stock, par value $0.0001 per share, of the Company (the “ Common Stock”). VBC 4 is a Delaware limited liability company managed by Chicago Pacific Founders GP III, L. P. (“ CPF GP III”), an affiliate of the principal stockholder of the Company. The entry into the Promissory Note and the issuance of the Warrants was approved by a committee of independent, disinterested directors of the Company.

VBC 4 Promissory Note

The Promissory Note was issued by P3 LLC to VBC 4 on February 13, 2025, and provides for funding of up to $30.0 million (the “ Promissory Note”), available for draw by P3 LLC in two tranches, as follows: (i) a first tranche of $15.0 million available to P3 LLC upon the Effective Date, and (ii) a second tranche of up to $15.0 million available at the Company’s sole option in a single draw, on or prior to March 15, 2025. The maturity date of the Promissory Note is August 13, 2028. Interest is payable at 19.5% per annum on a quarterly cycle (in arrears) beginning March 31, 2025. P3 LLC may elect to pay interest 11.5% in kind and 8.0% in cash, but if the terms of the Subordination Agreement (as defined below) do not permit P3 LLC to pay interest in cash, interest will be paid entirely in-kind. The Promissory Note may be prepaid, at the Company’s option, either in whole or in part, without penalty or premium, at any time and from time to time, subject to 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