Healthcare Finance Group Arranges $44MM for Caregiver Services
Healthcare Finance Group, LLC (HFG) announced that it has underwritten and agented a $29 million senior secured credit facility and arranged a $15 million subordinated term loan for Caregiver Services, Inc. (CSI). HFG acted as sole lead arranger in the term loan financing.
CSI, headquartered in Miami, is a nurse registry company in the U.S., providing registered nurses, licensed practical nurses, certified nurse assistants, home health aides, companions or homemakers to healthcare facilities and other entities requiring such services. CSI markets to and contracts with long-term care insurance policy holders, private pay clients, large agencies, facilities and other institutions to arrange for staffing assignments of non-skilled and skilled caregivers.
The $44 million financing facility is comprised of a $10 million asset-based senior secured revolving credit facility, a $19 million senior secured term loan and a $15 million subordinated term loan. The purpose of the financing was to refinance certain indebtedness and provide ongoing working capital to CSI.
David Eichler, managing member for Psilos Group, the majority investor in CSI, said, “My experience with the HFG team was very positive. I was truly impressed by HFG’s clarity in execution and how well they delivered on what was tendered in the original term sheet. In addition to being able to fully underwrite the senior secured credit facilities, HFG was able to place the subordinated term loan for us on very attractive terms, while minimizing our legal and other transaction costs. HFG was able to do this for us quite quickly and their seamless execution was truly appreciated by the entire CSI team.”
Regarding the transaction, SVP Steven Goldsmith of HFG said, “This is a very stable and growth-oriented company and we are very excited about their future. The new financing facility will assist with their growth and provide additional resources to support their strategic objectives.”
Additionally, Jim Gelwicks, HFG’s head of Syndication and Investment Banking said, “In today’s uncertain market many of our clients and prospects are looking for certainty. HFG was able to both fully underwrite the senior credit facilities and deliver the subordinated term loan at very attractive terms for CSI. More importantly, we were able to do this quickly and effectively without any unexpected surprises due to our strong understanding of the ever-changing healthcare marketplace. Many of the investors lending into both the senior and the sub debt marketplace also have looked to HFG to assist them in the underwriting process given our thoroughness and ability to understand and properly structure transactions of this nature, especially given the vagaries of lending in healthcare. We appreciate the confidence CSI placed in HFG to be the sole lead arranger of this entire facility.
HFG is a specialty lender dedicated exclusively to providing secured debt financing to healthcare companies.