Daily News: January 30, 2015

Yukon Invests in Encore Rehabilitation Services

Yukon Partners announced a subordinated debt and equity investment in Encore Rehabilitation Services. Revelstoke Capital Partners sponsored the transaction in which it, Yukon and other institutional co-investors made an investment in Encore.

Subordinated debt financing was provided by Yukon and Norwest Mezzanine Partners. Ally Corporate Finance served as administrative agent on the senior credit facility with Golub Capital also participating in the transaction. Ally Corporate Finance acted as joint lead arranger and sole bookrunner on the transaction. Management will continue to operate the business on a day-to-day basis.

Revelstoke will complement the Encore management team’s vision with strategic guidance and additional capital to accelerate the Company’s growth. Revelstoke will also leverage its transactional experience and network of industry contacts to pursue selective acquisitions and organic geographic expansion.

“Since day one of Encore, we have positioned the Company as a leading therapy provider focused on developing long term partnership relationships with our clients which leads to higher quality outcomes and reduced costs for payors,” remarked Linda Shackelford, Co-Founder and CEO of Encore. “We look forward to our partnership with Revelstoke and believe that their healthcare experience will assist us in continuing to grow our business.”

“Encore provides high quality care for patients and a compelling value proposition to its clients and payors,” said Mark King, CEO, Managing Partner and Co-Founder of Revelstoke. “We are enthusiastic about the prospect of partnering with an extremely talented and experienced management team to grow Encore and further solidify its position as a leader in outsourced post-acute therapy services. Yukon played an invaluable role in supporting Revelstoke and Encore.”

“Our partnership with the principals of Revelstoke is entering its third decade, and we are again delighted to invest alongside Mark King and his partners,” said Michael Hall, Managing Partner of Yukon. “We are confident that Revelstoke’s expansive healthcare experience will complement Linda Shackelford and her team in furthering Encore’s history of excellence.”

Farmington Hills, MI-headquartered Encore is a provider of outcome-driven rehabilitative services and associated compliance and revenue cycle support services primarily to skilled nursing facilities.