CIT Group’s Healthcare Finance unit served as the lead arranger of $93.7 million in combined financing for 19 healthcare facilities in California, Nevada and Washington owned by New Generation Health and affiliates of Genesis Healthcare.
New Gen, a healthcare consulting firm operating skilled nursing facilities in the Western U.S., will provide management and/or consulting services for the facilities. Affiliates of Genesis will continue to provide certain administrative and back office services, and therapy services.
As part of the transaction, CIT financed New Gen’s acquisition of seven facilities through a $74.7 million senior secured credit facility. Genesis retained an indirect 50% interest in the facilities. CIT also arranged a $19 million asset-based revolving credit facility to provide New Gen with working capital financing for an additional 12 healthcare facilities located in California, Washington and Nevada.
“We were impressed by CIT’s expertise in arranging these financings,” said Aaron Robin, chief executive officer of New Gen. “Given the complexities of healthcare, it was extremely helpful to work with a lender that has the industry knowledge needed to arrange and close the appropriate financing.”
“We worked closely with our clients to understand their business objectives and developed a customized financing package to meet their needs,” said William Douglass, managing director and group head for CIT’s Healthcare Finance unit. “We were glad to lend our expertise and knowledge to help our clients generate this creative financing model.”