Haversine Funding recently closed $3 million of a $6 million participation in an asset-based line to a technology-enabled healthcare management company and $2 million of a $4 million participation in a commercial real estate transaction.
For the ABL participation, the technology-enabled healthcare management company was transitioning into a new value-based business model within the healthcare space and needed additional working capital to set up this new billing model. Management was simultaneously raising capital that would fund post-closing from the proposed line. The company’s lender approached Haversine as the line size was higher than its typical hold limit. One of the challenges for the line was not only the medical receivable component, but also that the value-based advances were tied to future payments and prior and existing performance results. After working through the various elements of the transaction, Haversine enabled the lender to “win” the deal. And with the line of credit, the company was able to expand its platform and build out the new division. Since then, it also completed its capital raise, which will aid in future growth.
For the real estate transaction, the borrower was seeking financing to help fund a real estate acquisition in the Northeast, with an ultimate loan to value around 20%. The property was a functional assisted living facility that had been foreclosed on by its bank, which had then agreed to sell the property to the new borrower as an add-on to its other locations. The loan was used to help buy the property, upgrade the facility and stabilize operations to increase cash flow. The short-term loan would later be refinanced by a HUD facility. Haversine was able to share in the funding to help the lender take on the deal while maintaining its internal concentration limits.
In Q2/22, Haversine also worked on the following sampling of transactions:
- A $3 million ABL participation in a lender finance facility to a transportation factor
- A $4 million commercial real estate loan
- A $3 million inventory loan participation for a commodity manufacturing company
- A $1 million factoring participation for a talent solutions company
- A $375,000 factoring participation for an electrical systems and building management provider
- A $3 million junior capital lender finance facility to a transportation factor
- A $500,000 factoring participation for a fiber installation and services business
- A $2.75 million factoring participation for a healthcare staffing provider
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