case studies
Financing That Meets the Challenge.Our customized financing solutions are tailored to address the complex healthcare environment and our clients’ unique circumstances.
Case Study
Multi-State Urgent Care Provider
Background
One of the largest independent urgent care operators in the US with over 100 locations in three states was seeking to acquire over 80 new locations.
Opportunity
To complement its acquisition financing, this operator required support for its working capital needs. The company and its financial sponsors were seeking an ABL lender with extensive healthcare expertise. The right partner would need to address the company’s complex legal structure, understand the relevant corporate practice of medicine (“CPOM”) regulations, and navigate the change of ownership (“CHOW”) implications triggered by the acquisition. A successful closing would also depend on finalizing a complex inter-creditor agreement to clarify rights and priorities between the ABL and senior subordinated lenders.
Solution
SLR Healthcare ABL provided a $20,000,000 revolving line of credit to support the working capital needs of the combined business. The final loan structure successfully addressed the company’s unique legal and regulatory issues and provided a customized solution to support the successful business integration.
Case Study
Outpatient Mental Health Provider
Background
A provider of outpatient mental health services for adults and adolescents in the mid-Atlantic region of the US was looking for additional liquidity to continue its turnaround and restructure its balance sheet.
Opportunity
This outpatient provider was successfully working through a challenging transition to managed Medicaid when the COVID-19 pandemic hit, negatively impacting the company’s school-based business. As a result, their sponsor was looking for an ABL revolving line of credit to augment liquidity during the rightsizing of the school-based services. A lender who understood the company’s unique programs and reimbursement model was essential. The flexibility to deleverage the balance sheet over time was also a priority.
Solution
SLR Healthcare ABL provided a $10,000,000 revolving line of credit to support the company’s liquidity needs during the turnaround. An inter-creditor agreement was successfully negotiated that permitted reduction of the company’s senior subordinated debt over time as certain financial milestones were met.
Case Study
Healthcare Staffing Services
Background
Headquartered in the Southeast, a national provider of workforce solutions for the healthcare industry was looking to recapitalize its balance sheet.
Opportunity
Following an acquisition rollup strategy that failed to achieve the projected synergies, this staffing firm had incurred several years of losses. The board, led by the mezzanine lenders, brought in a new senior management team who returned the business to profitability. With the business now performing, the mezzanine lenders, who had supported the company through the turnaround, wished to recapitalize the balance sheet by bringing in an ABL revolving line of credit to reduce the amount of their invested capital.
Solution
SLR Healthcare ABL provided a $7,500,000 revolving line of credit to recap the balance sheet and provide liquidity for working capital and general corporate purposes. An intercreditor agreement was successfully negotiated with the mezzanine lenders who still make up the majority of the capital structure. The additional liquidity will enable this firm to continue its current growth trajectory.
contact our team
Contact our business development team to learn more about how SLR Healthcare ABL can help you meet your financing challenges.