Prospect Capital Corporation has provided $27 million of secured second-lien debt financing for CHC Companies, an outsourced provider of healthcare services to correctional facilities in the United States. The financing was used, together with proceeds from senior debt facilities, to support the acquisition of CHC Companies by private equity firm GTCR.
CHC Companies provides primary care, dental, behavioral, pharmacy, utilization management, and other healthcare services to public and private prisons and jails across 26 states. The company is based in Greenwood Village, CO (www.correctioncare.com).
“Prospect is pleased to have been selected by GTCR for the lead role to provide the second lien financing for this important transaction,” said Geoffrey Chang, Managing Director at Prospect Capital. “Prospect responded quickly and effectively to the tight timetable here, and we are thrilled to have structured a transaction that supports CHC’s growth strategy going forward.”
Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in an array of industries and is effectively industry agnostic. Prospect Capital is headquartered in New York (www.prospectstreet.com).
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $7 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. GTCR is based in Chicago (www.gtcr.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-15-13
