Abacus Finance Group served as Administrative Agent and Sole Lead Arranger of $25 million in senior cash-flow financing to support the leveraged buyout of Z-Medica Corporation by DW Healthcare Partners. In addition to providing the financing, Abacus, which focuses exclusively on providing cash-flow financing for private equity-sponsored, lower-middle market companies, made an equity co-investment in Z-Medica.
Z-Medica Corporation is a medical products company that develops hemostatic agents used to promote blood clotting in order to quickly stop severe, life threatening bleeding. The company’s products, marketed primarily under the QuikClot brand, are used by healthcare professionals, first responders, law enforcement officers and the military. Z-Medica was founded in 2002 by Francis Hursey and is based in Wallingford, CT (www.z-medica.com).
Abacus Finance targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million. The companies the firm finances generally have EBITDA between $3 million and $15 million. Abacus is sponsored by New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $10 billion in assets. The firm is based in New York (www.abacusfinance.com).
“DW Healthcare Partners’ exclusive focus on healthcare is a perfect match for us in terms of both our investment focus and our prior transaction experience,” said Tim Clifford, President and CEO of Abacus. “DWHP brought us a profitable and growing company in Z-Medica, a market leader with an impressive management team which will be led by Larry Hicks, a seasoned healthcare executive. What was especially important to both DWHP and Z-Medica was our substantial experience within healthcare, being easy to work with, and our flexibility in structuring this financing – all important aspects of what we call our Total Partnership Approach.”
DW Healthcare Partners is a private equity firm focused exclusively on the healthcare industry. The firm manages over $465 million in committed capital and invests in profitable healthcare companies with proven management teams. The firm is located in Park City, Utah (www.dwhp.com).
“This was a new relationship for us,” said Doug Schillinger, a Managing Director of DW Healthcare Partners, “and it proved to be a terrific one. The team at Abacus responded quickly, was tremendously enthusiastic, and gave us certainty of a close early on. They are definitely a firm we will turn to going forward.”
Zions Bank participated in the financing of the transaction, CMC Consulting acted as financial advisor to Z-Medica, and Goulston & Storrs provided legal counsel to Abacus.
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-20-12
