Daily News: April 2, 2012

Golub Capital Provided $27.5MM to DSI Renal for Acquisition

Golub Capital said it provided $27.5 million in subordinated notes and co-investment equity in connection with the acquisition of 54 Fresenius Medical Care clinics by DSI Renal, a portfolio company of Frazier Healthcare and New Enterprise Associates.

Based in Nashville, TN, DSI Renal is a provider of dialysis services to patients suffering from chronic kidney failure. With this acquisition, DSI Renal will operate 85 clinics across 23 states and provide care to more than 6,500 dialysis patients.

“The Golub Capital Healthcare Finance team has a very positive view on the dialysis space, having invested in the sector multiple times. We started talking to Frazier Healthcare about their own interest in the sector mid-last year, so this investment represents one that developed very nicely over time,” stated Stefano Robertson, a managing director and head of Healthcare Finance at Golub Capital. “Throughout the process, both Frazier Healthcare and NEA exhibited their deep domain knowledge and experience dealing with multi-faceted transactional issues. We look forward to working closely with both sponsors throughout the course of the investment, and to helping DSI Renal execute their business plan.”

Brian Morfitt, a partner at Frazier Healthcare commented, “Working with Golub Capital’s Healthcare Finance team was a real pleasure. They proved to be a value-added partner with whom we could discuss preliminary ideas, as we ultimately closed the deal using structure and economic terms similar to what they recommended early in the process. We look forward to working with them again.”