Franklin Square Capital Partners announced the origination by three of its BDCs of a $52.5 million second lien senior secured note to National Surgical Healthcare (NSH), a leading owner and operator of surgical hospitals and ambulatory surgery centers in the United States. NSH is a portfolio company of Irving Place Capital (IPC), a New York, NY based private equity firm focused on buyout and growth capital investments across the middle market.
The financing was provided by FS Investment Corporation (NYSE FSIC), FS Investment Corporation II (FSIC II) and FS Investment Corporation III (FSIC III), BDCs managed by affiliates of Franklin Square and sub-advised by an affiliate of GSO Capital Partners LP (GSO). The financing supports NSH’s acquisition of a majority interest in Optim Healthcare, a physician led provider of general and specialty healthcare services. The transaction also supports NSH’s acquisition of additional equity ownership in one of its existing surgical facilities.
“The lending capacity across our BDCs makes it possible to tailor financing for strong middle market companies like National Surgical Healthcare,” said Michael C. Forman, chairman and CEO of FSIC, FSIC II and FSIC III. “We are pleased to work with Irving Place Capital to support NSH’s growth.”
“NSH exhibits consistent revenue growth, strong free cash flow characteristics and clinical excellence,” commented Brad Marshall, senior managing director at GSO and the senior portfolio manager of FSIC, FSIC II and FSIC III. “We believe that given its unique operating model focused on non-emergency scheduled procedures, combined with exceptional patient outcomes, the company is well positioned to further expand its healthcare footprint.”
“The continued support of IPC combined with the certainty of execution provided by Franklin Square’s funds will be instrumental in achieving our growth strategy of partnering with surgical facilities with a strong market presence,” said David Crane, Chairman and Chief Executive Officer of National Surgical Healthcare.
Chicago-based NSH is an innovative healthcare partner that empowers physicians to thrive in a changing marketplace.