Gibraltar Business Capital (GBC) completed a large “accordion” structured working-capital deal for True Health Diagnostics (THD).

After initially seeking a $3.5 million facility for business expansion, THD was presented with an opportunity to acquire a major competitor out of bankruptcy. As a result the company needed GBC to commit $15 million, nearly five times the original loan.

GBC was able to fulfill this request by closing on a creative “accordion” structure, which allows rising companies to pay as they go rather than all up front. In this type of deal documents contemplate a $15 million facility but start small and grow as the company grows. This line of credit, for example, transitioned from $3.5 million at close to $15 million in just six months.

Dallas-based THD is an outcomes-focused diagnostic laboratory services provider focused on identification of early-onset conditions that lead to cardiovascular disease and other chronic illnesses, such as diabetes, THD offers increasingly critical laboratory services and practice management solutions to help physicians and healthcare providers identify, prevent and manage the progression of health risks identified by their proprietary testing.