HFG Arranges $44.5 Million Credit Facility for Genoa Healthcare
Healthcare Finance Group, LLC (HFG) announced that on December 2, 2011 it closed a new $44.5 million senior secured credit facility for Genoa Healthcare Holdings, LLC.
Based in Tukwila, WA, Genoa is a specialty pharmacy operator in the United States focused exclusively on serving the mental health community. In partnership with mental health providers, typically community mental health centers, Genoa provides on-site pharmacy and related services, operating 78 pharmacies in 24 states, serving over 40,000 patients and filling over 2 million prescriptions annually.
HFG is part of the syndicate of lenders that closed a $44.5 million senior secured credit facility to support Genoa’s growth and equity investment by Beecken Petty O’Keefe & Company. HFG acted as the co-lead arranger, joint bookrunner and syndication agent and is the collateral manager of this new facility, which will provide capital for continued expansion of Genoa’s innovative pharmacy model and ongoing working capital funding.
Prior to the consummation of this transaction, HFG was the sole lender, administrative agent and collateral manager to the company. The new facility is structured as a senior secured facility and consists of a $35 million term loan and $9.5 million revolving credit facility. The revolving aspect of the new facility allows Genoa the flexibility to manage its on-going funding needs.
“The new facility is a continuing step in accessing the capital markets to support our expansion plans and an important step in enabling us to position Genoa for growth,” said Kevin Martyn, Genoa’s president and CEO. “HFG has been our lender for over four years and their consultative assistance in this transaction, coupled with their ability to close it so quickly, is yet another example of them stepping up to support us in this significant step we are taking at Genoa.”
“HFG was able to offer us a variety of different structures that enabled us to have the funding necessary to close this transaction on a very expedited basis. HFG’s ability to both credit approve and close this deal door-to-door in a matter of weeks and deal with a variety of complicated issues were the reasons we selected them for this role. They came through as promised which was instrumental in closing this acquisition under the structure and timing desired by us,” said Troy Phillips, principal of Beecken Petty.
Regarding the transaction, John Calabro, EVP and national portfolio manager for HFG, said, “We are very proud and gratified in Genoa’s continued confidence in HFG’s capabilities, expertise, and execution. We are pleased to expand this long time mutually beneficial relationship and to be able to provide Genoa with the flexible financing facility they need to grow the company.”
Jim Gelwicks, HFG’s managing director and head of Syndications and Investment Banking, added, “This transaction continues to demonstrate our ability to work with clients, private equity investors and other lending institutions to develop creative solutions where HFG is able to underwrite sponsored healthcare-based finance deals and provide customized solutions to meet their individual needs. On the heels of the other deals that HFG has recently underwritten and placed, this transaction with Genoa continues to establish HFG as a preeminent middle-market healthcare underwriter and lender. The confidence that both Beecken Petty and Genoa placed in our ability to execute in a very short time frame was very gratifying.”
HFG is a specialty lender dedicated exclusively to providing debt financing to healthcare companies.