Webster Bank provided $20 million in senior credit facilities to Medical Arts Sanitarium, d/b/a Cornerstone Treatment Facilities Network (CTFN), a provider of substance use disorder treatment services, in support of CTFN’s change of control and ownership conversion to an Employee Stock Ownership Plan (ESOP).

Proceeds of the ESOP transaction funded the redemption and sale of shares to the ESOP and a concurrent acquisition of an inpatient treatment facility from a related party. Webster Bank, as sole lender, provided $20 million in senior debt along with $2 million in mezzanine notes from Oxer Capital. The transaction closed November 1, 2016.

“The combination of Webster Bank’s strong relationship culture highly experienced banking team, demonstrated healthcare expertise, and ESOP experience made them uniquely qualified to partner with CTFN on this very important transaction,” said Tom Puzo, CEO of Cornerstone.

“As a leader in providing innovative solutions and banking services to the Middle Market, we are pleased to partner with CTFN to support this strategic transaction and the company’s continued growth,” said Abby Parsonnet, New York regional president, Webster Bank.