GE Capital’s Healthcare Financial Services business ended the first six months of 2009 as one of the most active capital providers in the U.S. healthcare market, deploying approximately $1 billion for more than 45 transactions. Loans were used to refinance existing debt, support working capital needs and fund growth initiatives.
"Our primary focus this year has been to provide customers with tailored financing solutions to help them navigate the current economic cycle and meet business objectives,” said Darren Alcus, president of GE Capital, Healthcare Financial Services. “It’s an encouraging sign for the industry that demand for financing to support acquisitions, capital improvement projects and other growth initiatives has continued.”
In the first half of the year, GE Capital, Healthcare Financial Services utilized the expertise of its dedicated industry teams to meet the needs of customers across its three primary segments:
- AccessOne MedCard, Inc. – Acted as administrative agent on a $25 million revolving line of credit for AccessOne MedCard, Inc, a Charlotte, NC based company that provides alternative programs that allow hospitals to more efficiently serve their self-pay patient consumers. The financing is being used to refinance existing debt and to support growth initiatives. GE Capital Markets served as sole lead arranger and sole bookrunner.
- Arizant Healthcare Inc. - Provided a $75 million senior credit facility to Arizant Healthcare Inc., an Eden Prairie, MN based company. Arizant Healthcare Inc. pioneered the concept of forced-air patient warming with the 1987 introduction of the Bair Hugger® therapy. Today, more than 80 percent of U.S. hospitals use Bair Hugger® therapy. The loan is being used to refinance Arizant's existing indebtedness and for general corporate purposes. GE Capital Markets served as joint lead arranger and sole bookrunner.
- Medical Staffing Network Holdings, Inc. (MSN) - Agented an amendment to the existing $124 million senior secured credit facility. Medical Staffing Network Holdings, Inc., is a Boca Raton based healthcare staffing company. GE Capital Markets arranged the amended credit facility.
- Nyack Hospital – Increased Nyack Hospital’s existing credit facility to $30 million to support a capital improvement project. Nyack Hospital is a 375-bed community care medical/surgical hospital located in Nyack, NY.
- Regency Healthcare Group - Provided a $25 million senior secured credit facility to Regency Healthcare Group, a portfolio company of EDG Partners, LLC., based in Brentwood, TN. Regency Healthcare Group provides hospice care to terminally ill patients with the goal of improving quality of life for patients and their families. The loan is being used to refinance existing debt and for growth capital. GE Capital Markets arranged the transaction.
- Univita Health Inc. – Served as administrative agent on a $97 million senior credit facility for Univita Health Inc., a portfolio company of Genstar Capital. The loan is being used to refinance a portion of Univita's existing indebtedness and for general corporate purposes. Headquartered in Scottsdale, AZ, Univita Health Inc. provides an integrated approach to home-based care and support. GE Capital Markets arranged the transaction as sole bookrunner and co-lead arranger.
“Our longstanding commitment to the healthcare industry in combination with our in-depth healthcare finance expertise demonstrates our confidence in providing customers with optimal levels of liquidity and flexibility,” said Bob McCarrick, senior managing director for GE Capital, Healthcare Financial Services’ corporate finance team.
Healthcare Real Estate:
- Brookdale Senior Living, Inc. – Provided a $50 million first mortgage. The Borrower, Affiliates of Brookdale Senior Living (NYSE: BKD), is a national provider of senior housing.
- Life Care Centers of America - Provided an $83 million senior secured credit facility to Life Care Centers of America, a privately held skilled nursing owner/operator, based in Cleveland, TN. Life Care is a premier provider of long-term health care with over 200 facilities across the country. The loan was used in combination to refinance existing debt and to acquire several properties.
“There is no doubt the economic downturn has presented challenges and opportunities in the healthcare real estate market,” said Brian Beckwith, senior managing director for GE Capital, Healthcare Financial Services’ healthcare real estate team. “We have focused on providing dependable capital to our existing customers during this market cycle and are now seeing opportunities to develop new customer relationships.”
- Salient Surgical Technologies – Agented a $20 million senior secured credit facility. The credit facility includes a $15 million term loan and a $5 million accounts receivable revolver where GE was a co-lender. The loan will be used to fund growth with a focus on field sales expansion and new product pipeline. Salient Surgical Technologies, headquartered in Portsmouth, NH, is a medical device innovator that designs, manufactures and markets surgical tools based on its proprietary Transcollation™ technology.
“Our team is dedicated to assisting life science companies and supporting healthcare innovation,” said Anthony Storino, senior managing director for GE Capital, Healthcare Financial Services’ life science finance team. “Innovation is at the core of life sciences companies, so we work closely with customers to help support their need to invest, grow and remain competitive.”
About GE Capital, Healthcare Financial Services
With over $17 billion invested, GE Capital, Healthcare Financial Services is a premier provider of capital and services to the healthcare industry, with investments in more than 30 sub-sectors including long-term care, hospitals, pharmaceuticals, and medical devices. Our team of professionals provides deep industry expertise to create business and financial solutions tailored to meet the individual needs of our customers. For more information, visit www.gehealthcarefinance.com.
GE Capital offers consumers and businesses around the globe an array of financial products and services. GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. For more information, visit the company's Web site at www.ge.com.