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:
Corporate Finance:
- 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.”
Life Sciences:
- 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.