CIT’s healthcare finance business served as lead arranger on $100 million in financing for Cornerstone Healthcare Group and its long-term acute care hospital division.
Based in Dallas and founded in 1990, Cornerstone Healthcare Group is a healthcare company that manages a network of specialty hospitals, senior living communities, behavioral health facilities and home health and hospice operations. It is the fifth largest long-term acute care hospital operator, with 17 specialty hospitals nationwide.
Cornerstone Healthcare Group will use proceeds from the financing from CIT to refinance existing debt, provide for working capital requirements and for general corporate purposes. In connection with the financing, CIT is providing a package of cash management and capital markets services.
“We are committed to providing quality patient care in today’s dynamic medical environment,” Steve Jakubcanin, president and CEO of Cornerstone Healthcare Group, said. “We appreciated CIT’s macro healthcare knowledge and sub-sector expertise in arranging this financing to help us continue our growth strategy. Their financing solution was creative, enabling us to combine multiple financings into a single solution, resulting in more efficient execution.”
“Over more than three decades, Cornerstone Healthcare has built an outstanding reputation for excellence in operating medical facilities,” William Douglass, managing director and group head for CIT’s healthcare finance business, said. “They play an important role in the post-acute world and their focus on helping transition those critically ill patients from the hospital back home is a vital component in the healthcare ecosystem.”
