JPMorgan’s strategic situations division led a $30 million revolving credit facility and a new $370 million first lien term loan for Healogics, a provider of wound care. The financing resulted in an extension of the company’s debt maturity schedule, with no significant maturities prior to 2025.
In addition to the new credit facility and term loan, Healogics secured a $240 million equity investment. As part of the transaction, a group of new and existing investors, led by Clayton Dubilier & Rice (on behalf of its clients) and Northwestern Mutual, invested $75 million of common equity, and Marathon Asset Management invested more than $165 million in new preferred stock.
“This transaction demonstrates strong support and confidence in Healogics’ business and long-term growth plan,” David Bassin, CEO of Healogics, said. “With this new capital, we are well-positioned to further improve our operational capacity to expand the reach of our essential care to patients in need.
“Despite the challenges of the COVID-19 pandemic, Healogics maintained strong operations, keeping nearly every center open and continuing to deliver high-quality outcomes for patients. I am incredibly proud of the strength and resiliency of our team and the continued strength of our hospital partner relationships, particularly in a year where healthcare, including advanced wound care, has been a central priority. We expect to become an even stronger partner and caregiver to the patients and communities we serve well into the future with our highly experienced and passionate professional team reinforced by the backing of our new and existing investors.”
Weil, Gotshal & Manges served as legal advisor to Healogics and Evercore served as financial advisor. Additionally, FTI acted as an advisor to the company.
Ropes & Gray served as legal advisor to certain of the new investors and GLC Advisors served as financial advisor.