Golub Capital acted as Co-Lead Arranger for a $400 million first lien credit facility to support the dividend recap of Dialysis Newco (dba DSI Renal) by Frazier Healthcare and New Enterprise Associates. Golub Capital has been a debt provider to DSI Renal since April 2012. Frazier Healthcare and New Enterprise Associates acquired DSI Renal in September 2011.
“Consistent with our past experiences, the healthcare team from Golub Capital was solutions oriented and flexible, ultimately providing significant momentum to our financing needs. Golub Capital’s transparency and efficiency allowed us to maintain our focus on growing the business” said Ben Magnano, a Partner at Frazier Healthcare.
DSI Renal is a provider of dialysis services to patients suffering from chronic kidney failure. Together with the company’s physician partners, DSI owns and operates over 90 dialysis clinics in 22 states. DSI Renal is headquartered in Nashville (www.dsi-corp.com).
“The dialysis space is one which we’ve invested in on numerous occasions given the growth and stable outlook in the sector. DSI’s management team, led by Craig Goguen, along with the backing and strategic oversight from both Frazier and NEA, have created one of the leading players in the space and are well positioned for continued success” said Stefano Robertson, a Managing Director and head of the healthcare team at Golub Capital. “We are pleased to have been able to support them in a meaningful way with this transaction and expect to continue to do so in the future.”
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 underwrites and syndicates first lien loans up to $300 million. Golub Capital will hold up to $200 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. Golub has offices in New York and Chicago (www.golubcapital.com).
“This is our third transaction with Golub Capital’s healthcare team in the past three years and it continues to be a wonderful relationship. I have always found their team to uniquely understand how best to support our high growth portfolio companies by tailoring their financings accordingly. We look forward to working with them again,” said Mohamad Makhzoumi, a Partner at NEA and head of their healthcare services practice.
New Enterprise Associates 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 $13 billion in committed capital. The firm has offices in Menlo Park; Boston; New York; Chicago; and Washington, DC; Bangalore; Mumbai; Beijing; and Shanghai (www.nea.com).
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 of capital under management. Frazier Healthcare was founded in 1991 and has offices in Seattle and Menlo Park (www.frazierhealthcare.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-30-14