Golub Capital has provided $27.5 million in subordinated notes and co-investment equity in connection with the acquisition of 54 Fresenius Medical Care clinics by DSI Renal. DSI Renal is a portfolio company of Frazier Healthcare and New Enterprise Associates.
DSI Renal is a provider of dialysis services to patients suffering from chronic kidney failure. With this acquisition, DSI Renal will operate 85 clinics across 23 states and provide care to more than 6,500 dialysis patients. The company is based in Nashville, TN (www.dsi-corp.com).
“Working with Golub Capital’s Healthcare Finance team was a real pleasure. They proved to be a value-added partner with whom we could discuss preliminary ideas, as we ultimately closed the deal using structure and economic terms similar to what they recommended early in the process. We look forward to working with them again,” said Brian Morfitt, a Partner at Frazier Healthcare.
Frazier Healthcare is a provider of growth equity and venture capital to high growth and emerging healthcare service, biopharma and medical device companies. The firm has over $1.8 billion under management. Frazier Healthcare was founded in 1991 and has offices in Seattle, WA and Menlo Park, CA (www.frazierhealthcare.com).
Golub offers buy-and-hold products ranging from $10 million to $75 million and includes one-loan financings, senior, 2nd lien and subordinated debt, preferred stock and co-investment equity. The firm also underwrites and syndicates first lien loans up to $200 million. Golub Capital’s will hold up to $100 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. In addition to its New York headquarters, Golub also has offices in Atlanta, GA; and Chicago, IL (www.golubcapital.com).
“The Golub Capital Healthcare Finance team has a very positive view on the dialysis space, having invested in the sector multiple times. We started talking to Frazier Healthcare about their own interest in the sector mid-last year, so this investment represents one that developed very nicely over time,” said Stefano Robertson, a Managing Director and Head of Healthcare Finance at Golub Capital. “Throughout the process, both Frazier Healthcare and NEA exhibited their deep domain knowledge and experience dealing with multi-faceted transactional issues. We look forward to working closely with both sponsors throughout the course of the investment, and to helping DSI Renal execute their business plan.”
NEA invests in information technology, healthcare and energy technology companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm has approximately $11 billion in committed capital. NEA has offices in the Washington, DC; Menlo Park, CA; and New York, NY (www.nea.com).