Capital Southwest supported Osceola Capital’s recapitalization of Central Medical Group with a senior secured first lien term loan, revolver and capex line, as well as a minority equity investment. Capital Southwest led the financing and will act as the sole administrative agent on the credit facilities.

“We are thrilled to partner with Osceola on its recapitalization of CMG,” Douglas Kelley, managing director of Capital Southwest, said. “The business provides medical equipment solutions and services across the Northeast and Mid-Atlantic regions and is a critical partner to its hospice clients, especially during the COVID-19 pandemic.”

“The company’s management team has developed a strong reputation as a premier provider of hospice equipment management services in their target markets, and Osceola adds an exciting vision for CMG’s organic and acquisitive growth going forward,” Spencer Klein, vice president of Capital Southwest, said.

“Capital Southwest stood behind its term sheet despite severe market fluctuations and was an unflappable partner throughout the process of closing CMG,” Patrick Watkins, vice president of Osceola, said. “We appreciate their support and look forward to working with Capital Southwest to grow the company through add-on acquisitions and de novo facilities.”

Founded in 1997 and headquartered in Flanders, NJ, Central Medical Group is a provider of outsourced equipment management solutions for hospices. In addition to managing the logistics of delivering medical equipment to the site of care, Central Medical Group’s technology platform provides its clients with consolidated ordering and invoicing, as well as reporting and analytics on utilization, cost trends, and patient data.

Capital Southwest is an internally managed business development company with approximately $272 million in net assets as of March 31, 2020. In addition, Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments.