Daily News: January 15, 2013

Prospect Provides $27MM Financing for Support CHC Acquisition


Prospect Capital Corporation announced that it provided $27 million of secured second-lien debt financing for CHC Companies, an outsourced provider of healthcare services to correctional facilities. The financing was used, together with proceeds from senior debt facilities, in support of the acquisition of CHC by GTCR, a private equity firm.

CHC provides primary care, dental, behavioral, pharmacy, utilization management, and other healthcare services to public and private prisons and jails in 26 states. CHC offers a full suite of healthcare services for the continuum of custody, which extends care at the point of arrest through incarceration and release.

“Prospect is pleased to have been selected by GTCR for the lead role to provide the second lien financing for this important transaction,” said Geoffrey Chang, managing director at Prospect Capital Management LLC. “Prospect responded quickly and effectively to the tight timetable here, and we are thrilled to have structured a transaction that supports CHC’s growth strategy going forward.”

GTCR is a private equity firm focused on investing in growth companies in the financial services and technology, healthcare and information services and technology industries.

Prospect Capital is a closed-end investment company that lends to and invests in private and microcap public businesses.