GE Healthcare Financial Services Corporate Finance Team Closes $1.8 Billion in Transactions for First Half of 2008
GE Healthcare Financial Services’ corporate finance team ended the first six months of 2008 as one of the most active capital providers in today’s healthcare market, closing 23 transactions totaling $1.8 billion.
“We’re committed to providing healthcare companies with the most comprehensive business and financial resources in the industry,” said Bob McCarrick, Senior Managing Director for GE Healthcare Financial Services’ corporate finance team. “We have deep industry knowledge and the financial strength to provide capital in a challenging environment, helping our customers rise above the market and meet their goals.”
During the first half of 2008, the GE Healthcare Financial Services’ corporate finance team noticed several trends as healthcare companies adjusted to a decrease in market liquidity:
— Syndicated facilities are available, but are more challenging to execute
— Volume of second-lien and high-yield lending has decreased
— Amount of leverage on recently arranged transactions has decreased on average
— Collateralized/Asset Based (accounts receivable inventory and fixed assets) lending is on the rise
Here are a few recent examples of where GE Healthcare Financial Services met the financing needs of our customers in a down market:
— Ambulatory Services of America (ASA) of Nashville, Tennessee closed $123.5 million in senior credit facilities. The senior debt financing included a $20.0 million revolving line of credit, $70.0 million first lien term loan, and a $33.5 million second lien term loan. GE Healthcare Financial Services acted as Sole Lead Arranger and Sole Book-Runner for the financing and Administrative Agent for the first lien loans. GE also made a $5.0 million equity investment in Ambulatory Services of America.
— The Ensign Group, Inc. received a $50.0 million senior credit facility. The senior debt financing was structured as a $50.0 million asset-based revolving line of credit. The Ensign Group, Inc.’s operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, and other rehabilitative and healthcare services for both long-term residents and short-stay rehabilitation patients, at over 60 locations in California, Arizona, Texas, Washington, Utah and Idaho.
— Solis Women’s Health of Austin, Texas received $16.0 million in senior credit facilities. The senior debt financing included a $4.0 million revolving line of credit and a $12.0 million first lien term loan. GE Healthcare Financial Services acted as Sole Lead Arranger for the financing and Administrative Agent for the loans.
— Systems Xcellence, Inc. of Lisle, Illinois received $58.0 million in senior credit facilities. The senior debt financing included a $10.0 million revolving line of credit and a $48.0 million first lien term loan. GE Healthcare Financial Services acted as Sole Lead Arranger and Sole Book-Runner for the financing and Administrative Agent.
— Navilyst Medical of Marlborough, Massachusetts received $252.5 million in senior credit facilities. The senior debt financing included a $40.0 million revolving line of credit, $135.0 million first lien term loan, and a $77.5 million second lien term loan. GE Healthcare Financial Services acted as Co-Lead Arranger and Sole Book-Runner for the financing and Administrative Agent for the first and second lien loans. GE also made a $5.0 million equity investment in Navilyst Medical. GE also made an equity co-investment in the Avista Capital Partners’ buyout of Navilyst Medical from Boston Scientific Corporation.
“We’re helping our customers keep their businesses moving forward in a tight market by not only providing financing but also by sharing business expertise and best practices,” McCarrick said. “It’s part of our focus on partnering with them to address challenges both big and small.”
A leader in corporate financing, GE ranks near the top of several leveraged lending league tables from the Loan Pricing Corporation for the first six months, including:
— #1 US Sponsored Middle Market Lead Arranger
— #1 US LBO Lead Arranger
— #2 US M&A Lead Arranger
— #4 US Healthcare Lead Arranger
About GE Healthcare Financial Services
GE Healthcare Financial Services is the premier provider of capital, financial solutions, and related services for the global healthcare market. With approximately $22 billion in assets, GE Healthcare Financial Services offers a full range of financing capabilities from equipment leasing and real estate financing to working capital lending, vendor programs, and acquisition financing. With a dedicated focus and a deep knowledge of the healthcare industry, GE Healthcare Financial Services collaborates with customers to create tailored financial solutions that help them improve their productivity and profitability. For more information, visit www.gehealthcarefinance.com.