CIT Lead Arranger in $50MM Financing for QMES
CIT Group announced that CIT Corporate Finance, Healthcare served as sole lead arranger in a $50 million senior secured credit facility for QMES, a distributor of durable medical equipment to patients in nine states.
QMES is a portfolio company of Quadrant Management, a private equity firm based in New York City. The facility will be used to refinance legacy debt and provide for ongoing working capital needs. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT.
“QMES has an impressive track record of growth, having completed 10 acquisitions since 2012 and effectively establishing itself as one of the largest medical equipment home delivery companies on the East Coast,” said William Douglass, managing director and group head of CIT Corporate Finance, Healthcare. “We were able to leverage our extensive expertise in middle market healthcare finance to deliver a total financing solution that met their needs. We look forward to building this relationship.”
Luke McGee, chairman and CEO of QMES, said, “QMES derives revenue from an extensive network of referral sources and maintains and grows these relationships by providing high quality services, clinical expertise and differentiated offerings designed to improve patient outcomes on a region-by-region basis. We’ve expanded our presence significantly with a series of acquisitions over the past two years. CIT clearly understood our sector and was the ideal partner to support us as we looked to evolve our financial structure to reflect to the company we’ve become and position ourselves for the future.”
QMES is a distributor of Durable Medical Equipment to patients in nine states: PA, NJ, CT, DE, NH, NY, MA, MD and RI. Revenue is primarily generated from the rental of medical equipment for home use and sales of medical supplies.