Daily News: April 28, 2014

Golub Co-Lead Arranger on DSI Dividend Recap Facility

Golub Capital announced it acted as co-lead arranger for a $400 million first lien credit facility to support the dividend recap of Dialysis Newco d/b/a DSI Renal by Frazier Healthcare and New Enterprise Associates. Golub Capital has been a debt provider to DSI since 2012.

DSI is a provider of dialysis services in the United States to patients suffering from chronic kidney failure. Together with their physician partners, DSI owns and operates over 90 dialysis clinics in 22 states.

“Consistent with our past experiences, the healthcare team from Golub Capital was solutions-oriented and flexible, ultimately providing significant momentum to our financing needs. Golub Capital’s transparency and efficiency allowed us to maintain our focus on growing the business,” said Ben Magnano, a partner at Frazier Healthcare.

Mohamad Makhzoumi, a partner at NEA and head of their healthcare services practice, added, “This is our third transaction with Golub Capital’s Healthcare team in the past three years and it continues to be a wonderful relationship.”

“The dialysis space is one which we’ve invested in on numerous occasions given the growth and stable outlook in the sector. DSI’s management team, led by Craig Goguen, along with the backing and strategic oversight from both Frazier and NEA, have created one of the leading players in the space and are well positioned for continued success,” said Stefano Robertson, a managing director and head of the healthcare team at Golub Capital.

Frazier Healthcare, founded in 1991 to invest exclusively in healthcare, is a provider of growth equity and venture capital to emerging health care companies.

New Enterprise Associates is a venture capital firm focused on helping entrepreneurs build businesses across multiple stages, sectors and geographies.