bios-20210331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended March 31, 2021
			OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to

Commission file number: 001-11993

OPTION CARE HEALTH, INC.

(Exact name of registrant as specified in its charter)

Delaware

05-0489664

(State of incorporation)

(I.R.S. Employer Identification No.)

3000 Lakeside Dr.

Suite 300N,

Bannockburn,

60015

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code:

312-940-2443

Securities registered pursuant to Section 12(b) of the Act:


Title of each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	OPCH	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated filer ☑ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

On May 4, 2021, there were 179,826,946 shares of the registrant’s Common Stock outstanding.

TABLE OF CONTENTS


		Page Number
PART I

Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)	5
	Unaudited Condensed Consolidated Statements of Cash Flows	6
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29

PART II

Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 6.	Exhibits	30

SIGNATURES		30

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PART I

FINANCIAL INFORMATION

Item 1.Financial Statements

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OPTION CARE HEALTH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS)


	(unaudited)
	March 31, 2021		December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	109,362	$	99,265
Accounts receivable, net	323,890		328,340
Inventories	173,622		158,601
Prepaid expenses and other current assets	57,860		70,806
Total current assets	664,734		657,012

NONCURRENT ASSETS:
Property and equipment, net	116,311		121,149
Operating lease right-of-use asset	66,563		68,795
Intangible assets, net	342,379		351,052
Goodwill	1,428,610		1,428,610
Other noncurrent assets	21,873		20,821
Total noncurrent assets	1,975,736		1,990,427
TOTAL ASSETS	$	2,640,470	$	2,647,439

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	290,939	$	282,913
Accrued compensation and employee benefits	40,691		58,899
Accrued expenses and other current liabilities	57,748		64,075
Current portion of operating lease liability	19,011		18,886
Current portion of long-term debt	11,775		9,250
Total current liabilities	420,164		434,023

NONCURRENT LIABILITIES:
Long-term debt, net of discount, deferred financing costs and current portion	1,121,143		1,115,103
Operating lease liability, net of current portion	68,136		70,776
Deferred income taxes	3,973		3,339
Other noncurrent liabilities	8,974		8,474
Total noncurrent liabilities	1,202,226		1,197,692
Total liabilities	1,622,390		1,631,715

STOCKHOLDERS’ EQUITY:
Preferred stock; $0.0001 par value; 12,500,000 shares authorized, no shares outstanding as of March 31, 2021 and December 31, 2020, respectively	—		—
Common stock; $0.0001 par value: 250,000,000 shares authorized, 180,203,422 shares issued and 179,819,700 shares outstanding as of March 31, 2021; 180,178,308 shares issued and 179,794,586 shares outstanding as of December 31, 2020	18		18
Treasury stock; 383,722 shares outstanding, at cost, as of March 31, 2021 and December 31, 2020, respectively	(2,403)		(2,403)
Paid-in capital	1,130,448		1,129,312
Accumulated deficit	(102,892)		(100,031)
Accumulated other comprehensive loss	(7,091)		(11,172)
Total stockholders’ equity	1,018,080		1,015,724
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,640,470	$	2,647,439

The notes to unaudited condensed consolidated financial statements are an integral part of these statements.

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OPTION CARE HEALTH, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


	Three Months Ended March 31,
	2021		2020
NET REVENUE	$	759,237	$	705,440
COST OF REVENUE	593,764		547,411
GROSS PROFIT	165,473		158,029

OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses	120,040		129,280
Depreciation and amortization expense	16,339		20,101
Total operating expenses	136,379		149,381
OPERATING INCOME	29,094		8,648

OTHER INCOME (EXPENSE):
Interest expense, net	(19,481)		(28,087)
Equity in earnings of joint ventures	1,205		562
Other, net	(12,401)		8
Total other expense	(30,677)		(27,517)

LOSS BEFORE INCOME TAXES	(1,583)		(18,869)
INCOME TAX EXPENSE	1,278		1,041

NET LOSS	$	(2,861)	$	(19,910)

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Change in unrealized gains (losses) on cash flow hedges, net of income tax expense of $0 and $0, respectively	4,081		(16,632)
OTHER COMPREHENSIVE INCOME (LOSS)	4,081		(16,632)
NET COMPREHENSIVE INCOME (LOSS)	$	1,220	$	(36,542)

LOSS PER COMMON SHARE
Loss per share, basic and diluted	$	(0.02)	$	(0.11)

Weighted average common shares outstanding, basic and diluted	179,808		176,661

The notes to unaudited condensed consolidated financial statements are an integral part of these statements.

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OPTION CARE HEALTH, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)


	Three Months Ended March 31,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,861)	$	(19,910)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation and amortization expense	17,716		21,844
Non-cash operating lease costs	3,810		4,764
Deferred income taxes - net	634		300
Loss on extinguishment of debt	12,403		—
Amortization of deferred financing costs	1,253		1,396
Equity in earnings of joint ventures	(1,205)		(562)
Stock-based incentive compensation expense	1,205		757
Other adjustments	96		(882)
Changes in operating assets and liabilities:
Accounts receivable, net	4,450		(12,781)
Inventories	(15,021)		(23,252)
Prepaid expenses and other current assets	12,946		3,603
Accounts payable	8,026		42,302
Accrued compensation and employee benefits	(18,208)		6,651
Accrued expenses and other current liabilities	(2,357)		(1,650)
Operating lease liabilities	(5,160)		(4,740)
Other noncurrent assets and liabilities	653		563
Net cash provided by operating activities	18,380		18,403

CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(3,123)		(5,353)
Net cash used in investing activities	(3,123)		(5,353)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt	355,200		—
Exercise of stock options, vesting of restricted stock, and related tax withholdings	(69)		(549)
Repayments of debt	(2,944)		(2,313)
Deferred financing costs	(2,880)		—
Debt prepayment fees	(2,458)		—
Retirement of debt	(352,009)		—
Net cash used in financing activities	(5,160)		(2,862)
NET INCREASE IN CASH AND CASH EQUIVALENTS	10,097		10,188
Cash and cash equivalents - beginning of the period	99,265		67,056
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	109,362	$	77,244

Supplemental disclosure of cash flow information:
Cash paid for interest	$	21,502	$	25,936
Cash paid for income taxes	$	111	$	307
Cash paid for operating leases	$	6,768	$	6,798

The notes to unaudited condensed consolidated financial statements are an integral part of these statements.

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OPTION CARE HEALTH, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(IN THOUSANDS)


	Preferred Stock		Common Stock		Treasury Stock		Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Total Stockholders’ Equity
Balance - December 31, 2019	$	—	$	18	$	(2,403)	$	1,008,362	$	(91,955)	$	(7,195)	$	906,827
Exercise of stock options, vesting of restricted stock and related tax withholdings	—		—		—		(549)		—		—		(549)
Stock-based incentive compensation	—		—		—		757		—		—		757
Net loss	—		—		—		—		(19,910)		—		(19,910)
Other comprehensive loss	—		—		—		—		—		(16,632)		(16,632)
Balance - March 31, 2020	$	—	$	18	$	(2,403)	$	1,008,570	$	(111,865)	$	(23,827)	$	870,493


Balance - December 31, 2020	$	—	$	18	$	(2,403)	$	1,129,312	$	(100,031)	$	(11,172)	$	1,015,724
Exercise of stock options, vesting of restricted stock, and related tax withholdings	—		—		—		(69)		—		—		(69)
Stock-based incentive compensation	—		—		—		1,205		—		—		1,205
Net loss	—		—		—		—		(2,861)		—		(2,861)
Other comprehensive income	—		—		—		—		—		4,081		4,081
Balance - March 31, 2021	$	—	$	18	$	(2,403)	$	1,130,448	$	(102,892)	$	(7,091)	$	1,018,080

The notes to unaudited condensed consolidated financial statements are an integral part of these statements.

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OPTION CARE HEALTH, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. NATURE OF OPERATIONS AND PRESENTATION OF FINANCIAL STATEMENTS

Corporate Organization and Business — HC Group Holdings II, Inc. (“HC II”) was incorporated under the laws of the State of Delaware on January 7, 2015, with its sole shareholder being HC Group Holdings I, LLC. (“HC I”). On April 7, 2015, HC I and HC II collectively acquired Walgreens Infusion Services, Inc. and its subsidiaries from Walgreen Co., and the business was rebranded as Option Care (“Option Care”).

On March 14, 2019, HC I and HC II entered into a definitive agreement (the “Merger Agreement”) to merge with and into a wholly-owned subsidiary of BioScrip, Inc. (“BioScrip”), a national provider of infusion and home care management solutions, along with certain other subsidiaries of BioScrip and HC II. The merger contemplated by the Merger Agreement (the “Merger”) was completed on August 6, 2019 (the “Merger Date”). The Merger was accounted for as a reverse merger under the acquisition method of accounting for business combinations with Option Care being considered the accounting acquirer and BioScrip being considered the legal acquirer. Following the close of the transaction, BioScrip was rebranded as Option Care Health, Inc. (“Option Care Health”, or the “Company”). The combined company’s stock is listed on the Nasdaq Global Select Market as of March 31, 2021. See Note 14, Stockholders’ Equity, for further discussion of HC I’s ownership as of March 31, 2021.

Option Care Health, and its wholly-owned subsidiaries, provides infusion therapy and other ancillary health care services through a national network of 98 full service pharmacies. The Company contracts with managed care organizations, third-party payers, hospitals, physicians, and other referral sources to provide pharmaceuticals and complex compounded solutions to patients for intravenous delivery in the patients’ homes or other nonhospital settings. The Company operates in one segment, infusion services.

Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States and contain all adjustments, including normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for interim financial reporting. The results of operations for the interim periods presented are not necessarily indicative of the results of operations for the entire year. These unaudited condensed consolidated financial statements do not include all of the information and notes to the financial statements required by GAAP for complete financial statements and should be read in conjunction with the 2020 audited consolidated financial statements, including the notes thereto, as presented in the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2021.

Principles of Consolidation — The Company’s unaudited condensed consolidated financial statements include the accounts of Option Care Health, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation.

The Company has investments in companies that are 50% owned and are accounted for as equity-method investments. The Company’s share of earnings from equity-method investments is included in the line entitled “Equity in earnings of joint ventures” in the unaudited condensed consolidated statements of comprehensive income (loss). See Equity-Method Investments within Note 2, Summary of Significant Accounting Policies, for further discussion of the Company’s equity-method investments.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Prepaid expenses and other current assets — Included in prepaid expenses and other current assets are rebates receivable from pharmaceutical and medical supply manufacturers of $31.7 million and $35.2 million as of March 31, 2021 and December 31, 2020, respectively. There were no other items included in prepaid expenses and other current assets that comprised 5% or more of total current assets.

Equity Method Investments — The Company’s investments in certain unconsolidated entities are accounted for under the equity method. The balance of these investments is included in other noncurrent assets in the accompanying condensed consolidated balance sheets. As of March 31, 2021 and December 31, 2020, the balance of the investments were $18.2 million and $17.0 million, respectively. The investments are increased to reflect the Company’s capital contributions and equity in earnings of the investees. The investments are decreased to reflect the Company’s equity in losses of the investees and for distributions received that are not in excess of the carrying amount of the investments. The Company’s proportionate share of earnings or losses of the investees are recorded in equity in earnings of joint ventures in the accompanying unaudited condensed consolidated statements of comprehensive income (loss). The Company’s proportionate share of earnings was $1.2 million and $0.6 million for the three months ended March 31, 2021 and 2020, respectively. Distributions from the investees are treated as cash inflows from operating activities within other adjustments in the unaudited condensed consolidated statements of cash flows. The Company did not receive a distribution from the investees for the three months ended March 31, 2021. During the three months ended March 31, 2020, the Company received distributions from the investees of $0.5 million. See Footnote 16, Related-Party Transactions, for discussion of related-party transactions with these investees.

Concentrations of Business Risk — The Company generates revenue from managed care contracts and other agreements with commercial third-party payers. Revenue related to the Company’s largest payer was approximately 16% and 13% for the three months ended March 31, 2021 and 2020, respectively. In December 2019, the Company renewed and expanded its multi-year contract with this payer. The contract renewal was effective in February 2020 for a two-year term and auto-renews annually thereafter unless notice is provided. There were no other managed care contracts that represent greater than 10% of revenue for the periods presented.

For the three months ended March 31, 2021 and 2020, approximately 18% and 12%, respectively, of the Company’s revenue was reimbursable through direct government healthcare programs, such as Medicare and Medicaid. As of March 31, 2021 and December 31, 2020, approximately 13% and 15%, respectively, of the Company’s accounts receivable was related to these programs. Governmental programs pay for services based on fee schedules and rates that are determined by the related governmental agency. Laws and regulations pertaining to government programs are complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change in the near term.

The Company does not require its patients nor other payers to carry collateral for any amounts owed for goods or services provided. Other than as discussed above, concentration of credit risk relating to trade accounts receivable is limited due to the Company’s diversity of patients and payers. Further, the Company generally does not provide charity care, however, Option Care Health offers a financial assistance program for patients that meet certain defined hardship criteria.

For the three months ended March 31, 2021 and 2020, approximately 67% and 70%, respectively, of the Company’s pharmaceutical and medical supply purchases were from three vendors. Although there are a limited number of suppliers, the Company believes that other vendors could provide similar products on comparable terms. However, a change in suppliers could cause delays in service delivery and possible losses in revenue, which could adversely affect the Company’s financial condition or operating results. Although there remains some uncertainty regarding the COVID-19 pandemic, as of March 31, 2021 the Company has been able to maintain adequate levels of supplies and pharmaceuticals to support its operations.

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3. REVENUE

The following table sets forth the net revenue earned by category of payer for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Commercial payers	$	611,434	$	605,994
Government payers	134,914		86,271
Patients	12,889		13,175
Net revenue	$	759,237	$	705,440

4. INCOME TAXES

During the three months ended March 31, 2021, the Company recorded tax expense of $1.3 million, which represents a negative effective tax rate of 80.7%. During the three months ended March 31, 2020, the Company recorded a tax expense of $1.0 million, which represents a negative effective tax rate of 5.5%.

The Company maintains a full valuation allowance of $112.3 million against all of its net U.S. federal and state deferred tax assets with the exception of $0.5 million of estimated state net operating losses (“NOL”). In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. The Company considers the scheduled reversal of deferred tax liabilities, including the effect in available carryback and carryforward periods, projected taxable income and tax-planning strategies, in making this assessment. On a quarterly basis, the Company evaluates all positive and negative evidence in determining if the valuation allowance is fairly stated.

Based on the Company’s full valuation allowance, as noted above, the Company’s tax expense for the three months ended March 31, 2021 of $1.3 million consists of quarterly tax liabilities attributable to specific state taxing authorities as well as recognized deferred tax expense.

The Company has accumulated U.S. federal net operating loss carryovers that are subject to one or more Section 382 limitations. This may limit the Company’s ability to utilize its U.S. federal net operating losses.

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5. (LOSS) EARNINGS PER SHARE

The Company presents basic and diluted (loss) earnings per share for its common stock. Basic (loss) earnings per share is calculated by dividing the net (loss) income of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted (loss) earnings per share is determined by adjusting the profit or loss and the weighted average number of shares of common stock outstanding for the effects of all potentially dilutive securities.

The (loss) earnings is used as the basis of determining whether the inclusion of common stock equivalents would be anti-dilutive. The computation of diluted shares for the three months ended March 31, 2021 and 2020 excludes the effect of these common stock equivalents as their inclusion would be anti-dilutive to the loss per share recorded in those periods. As of March 31, 2021 there were 2,285,784 warrants, 789,586 stock options and 1,080,334 restricted stock awards outstanding that were excluded from the calculation of loss per share for the three months ended March 31, 2021 as they would be anti-dilutive. As of March 31, 2020, there were 2,328,120 warrants, 531,747 stock options and 484,326 restricted stock awards outstanding that were excluded from the calculation of loss per share for the three months ended March 31, 2020 as they would be anti-dilutive.

The following table presents the Company’s basic and diluted (loss) earnings per share and shares outstanding (in thousands, except per share data):


	Three Months Ended March 31,
	2021		2020
Numerator:
Net loss	$	(2,861)	$	(19,910)
Denominator:
Weighted average number of common shares outstanding	179,808		176,661
Loss per common share:
Loss per common share, basic	$	(0.02)	$	(0.11)

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6. LEASES

During the three months ended March 31, 2021 and 2020, the Company incurred operating lease expenses of $7.5 million and $7.7 million, respectively, including short-term lease expenses, which were included as a component of selling, general and administrative expenses in the unaudited condensed consolidated statements of comprehensive income (loss). As of March 31, 2021, the weighted-average remaining lease term was 6.6 years and the weighted-average discount rate was 5.22%.

Operating leases mature as follows (in thousands):


Fiscal Year Ending December 31,	Minimum Payments
2021	$	19,618
2022	19,642
2023	16,323
2024	11,081
2025	8,656
Thereafter	28,423
Total lease payments	$	103,743
Less: Interest	(16,596)
Present value of lease liabilities	$	87,147

During the three months ended March 31, 2020, the Company did not enter into any significant new operating or financing leases. During the three months ended March 31, 2021, the Company commenced new leases, extensions and amendments, resulting in non-cash investing and financing activities in the unaudited condensed consolidated statements of cash flow of $1.6 million related to increases in the operating lease right-of-use asset and operating lease liabilities, respectively. As of March 31, 2021, the Company did not have any significant operating or financing leases that had not yet commenced.

7. PROPERTY AND EQUIPMENT

Property and equipment was as follows as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021		December 31, 2020
Infusion pumps	$	31,419	$	31,678
Equipment, furniture and other	50,281		47,886
Leasehold improvements	87,711		87,483
Computer software, purchased and internally developed	28,331		27,799
Assets under development	11,911		10,793
	209,653		205,639
Less: accumulated depreciation	93,342		84,490
Property and equipment, net	$	116,311	$	121,149

Depreciation expense is recorded within cost of revenue and operating expenses within the unaudited condensed consolidated statements of comprehensive income (loss), depending on the nature of the underlying fixed assets. The depreciation expense included in cost of revenue relates to revenue-generating assets, such as infusion pumps. The depreciation expense included in operating expenses is related to infrastructure items, such as furniture, computer and office equipment, and leasehold improvements. The following table presents the amount of depreciation expense recorded in cost of revenue and operating expenses for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Depreciation expense in cost of revenue	$	1,377	$	1,742
Depreciation expense in operating expenses	7,598		11,319
Total depreciation expense	$	8,975	$	13,061

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8. GOODWILL AND OTHER INTANGIBLE ASSETS

There was no change in the carrying amount of goodwill for the three months ended March 31, 2021.

Changes in the carrying amount of goodwill consists of the following activity for the three months March 31, 2020 (in thousands):


Balance at December 31, 2019						1,425,542
Merger purchase accounting adjustments						2,341
Balance at March 31, 2020						1,427,883

The carrying amount and accumulated amortization of intangible assets consists of the following as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021		December 31, 2020
Gross intangible assets:
Referral sources	$	438,121	$	438,121
Trademarks/names	44,536		44,536
Other amortizable intangible assets	402		402
Total gross intangible assets	483,059		483,059

Accumulated amortization:
Referral sources	(117,048)		(110,498)
Trademarks/names	(23,247)		(21,146)
Other amortizable intangible assets	(385)		(363)
Total accumulated amortization	(140,680)		(132,007)
Total intangible assets, net	$	342,379	$	351,052

Amortization expense for intangible assets was $8.7 million and $8.8 million for the three months ended March 31, 2021 and 2020, respectively.

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9. INDEBTEDNESS

Long-term debt consisted of the following as of March 31, 2021 (in thousands):


	Principal Amount		Discount		Debt Issuance Costs		Net Balance
ABL facility	$	—	$	—	$	—	$	—
First lien term loan	1,162,806		(9,560)		(20,328)		1,132,918
Second lien notes	—		—		—		—
	$	1,162,806	$	(9,560)	$	(20,328)	1,132,918
Less: current portion							(11,775)
Total long-term debt							$	1,121,143

Long-term debt consisted of the following as of December 31, 2020 (in thousands):


	Principal Amount		Discount		Debt Issuance Costs		Net Balance
ABL facility	$	—	$	—	$	—	$	—
First lien term loan	915,750		(7,253)		(19,710)		888,787
Second lien notes	245,781

SEC Form 10-Q filed by Option Care Health, Inc.