Abacus Finance was the Administrative Agent and Sole Lead Arranger for $45 million in senior secured credit facilities to support the recapitalization of Xtend Healthcare by WestView Capital Partners.
Xtend Healthcare is a national provider of revenue cycle outsourcing services to small, critical access hospitals as well as multi-hospital health systems. The company’s services range from short-term, resource intensive solutions for temporary accounts receivable issues to long-term, full-service, revenue cycle outsourcing. Xtend was founded in 2009 and is headquartered near Nashville in Hendersonville, TN (www.xtendhealthcare.net).
“Having worked with members of the Abacus team for over 15 years, we knew exactly what to expect – a quick underwriting commitment, the certainty of close, and seamless execution,” said Matt Carroll, General Partner of WestView.
Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million. The companies that Abacus finances generally have EBITDAs between $3 million and $15 million. Abacus was formed in June 2011 and is an affiliate of 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. Abacus is based in New York (www.abacusfinance.com).
Abacus team members involved in the transaction included Sean McKeever and Eric Petersen. Abacus was joined in the financing by Crescent Capital (www.crescentcap.com).
“WestView is a longstanding sponsor client with whom we are fortunate to have a great working relationship,” said Tim Clifford, President and CEO of Abacus. “Matt Carroll and his partners know that we are easy to work with, and our due diligence process coupled with our knowledge of the healthcare sector were critical factors in a smooth and successful close – important aspects of what we call our Total Partnership Approach.”
WestView Capital Partners invests from $10 million to $50 million of equity in lower middle market companies with EBITDAs between $3 million and $20 million. Industries of interest include business and healthcare services; software and IT services; industrial and manufacturing; distribution and logistics; media and publishing; and consumer products and retail. The firm will invest both as a minority or majority investor. In November 2013 the firm closed WestView Capital Partners III, LP, at $430 million. The fund experienced strong demand and was significantly over-subscribed. WestView was founded in 2004 by Managing Partners Carlo von Schroeter and Rick Williams. The firm is based in Boston (www.wvcapital.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-16-14
