Daily News: February 21, 2014

Madison Capital Agents NextCare Holdings $145MM Facility

Enhanced Equity Funds (EEF), a healthcare focused private equity fund in the lower middle-market, announced that its portfolio company NextCare Holdings completed the refinancing of a $145 million senior secured credit facility.

Madison Capital acted as the administrative agent for the new credit facility, with commitments from NXT Capital, Siemens Financial Services, Business Development Corporation of America, Jefferies Finance and Fifth Street Senior Floating Rate.

A portion of the proceeds was used to finance NextCare’s expansion into the Tulsa market with the acquisition of two Tulsa-based urgent care companies, MedCenter and ERgent Care. The acquisitions add five urgent care facilities to the NextCare portfolio, for a total of 101 locations throughout the U.S. In addition, the credit facility includes $20 million of commitments set aside to fund future acquisitions.

John Julian, CEO of NextCare, said, “We are pleased with the favorable reaction from the marketplace and the continued strength of our company that enabled us to quickly complete this refinancing with key lenders and on terms favorable with the current marketplace. We are currently evaluating a robust pipeline of high-quality acquisition targets, and this new facility gives us the flexibility to pursue those growth opportunities.”

Malcolm Kostuchenko, managing partner of Enhanced, said, “The urgent care industry continues to be a rapidly growing healthcare sector that provides cost-effective, convenient medical services to consumers. NextCare is a leader in this area that continues to grow organically and through targeted acquisitions.”

EEF is a private equity firm focused exclusively on investing in the healthcare industry.

NextCare Holdings is one of the nation’s largest providers of urgent care and occupational medical services, with an emphasis on a comprehensive approach called Full Circle Care that ensures patients experience the highest level of care, from reception to recovery.