GE Capital Healthcare Completes $7B in Financing in 2011
GE Capital, Healthcare Financial Services announced it financed more than $7 billion to customers in over 200 transactions in 2011 and was the leading arranger of loans to U.S. healthcare middle-market companies.
In 2011, GE Capital Markets was the #1 lead arranger by volume and number of transactions completed for all financings under $500 million in U.S. healthcare leveraged finance, according to Thompson Reuters LPC Loan Connector.
GE Capital’s healthcare finance business delivered critical financing to healthcare companies in need of a broad array of products, including cash-flow and asset-based loans, real estate mortgages and venture loans, despite ongoing uncertainties surrounding the healthcare industry. The business attributes its performance in 2011 to a combination of factors including its deep healthcare domain expertise, GE Capital’s capabilities in arranging and syndicating healthcare loans and the strong market acceptance of a unitranche loan product provided through the Senior Secured Loan Program (SSLP).
The SSLP, jointly managed by Ares Capital and an affiliate of GE Capital, provides one loan to replace traditional senior and mezzanine debt, allowing for greater speed and simplicity. GE Capital, Healthcare Financial Services closed five new transactions through the SSLP during 2011 totaling approximately $680 million.
Looking ahead to 2012, the financing pipeline for the business looks promising. “U.S. healthcare companies continue to face a challenging landscape driven by increased regulatory scrutiny, an evolving healthcare system and uncertain reimbursements,” said Darren Alcus, president and CEO of GE Capital, Healthcare Financial Services. “However, given aging demographics, continuing strong demand for access to high-quality healthcare and advances in medical treatments, we believe that smart healthcare companies will find opportunities for profitable growth. We’re here to help them build their business.”