Daily News: May 25, 2017

Super G Provides $1.5MM Bridge Facility to Healthcare Technology Firm

Super G Capital provided a $1.5 million bridge facility for a software as a service (SaaS) company that provides data management solutions to insurance agencies, government agencies, hospital and healthcare organizations.

The company’s service offering includes enrollment and network management, medical credential verification, continuous monitoring of provider data and claims screening.

The company was in the process of a large strategic equity raising round and was seeking interim (bridge) capital to support its continued growth. It also needed general working capital to alleviate equity closing pressure.

The company had an existing senior term loan with an affiliate of funds managed by Fortress Investment Group, secured by the company’s intellectual property and all other business assets. Traditional working capital solutions, such as asset-based lending/factoring were not options due to seniority issues as well as insufficient borrowing base availability. Also, given the anticipated time horizon to a large equity raise, the company preferred non-dilutive capital versus convertible note/shareholder equity options.

Super G was able to work closely with Fortress to provide a $1.5 million structured working capital solution by carving out specific contracts as collateral and lending against the annual value of those contracts. This provided the company with more access to immediate cash than they could obtain with a traditional asset-based lender. This unique structure, combined with non-dilutive capital, were the key points that helped the company choose the bridge structure.