CIT Healthcare Finance was the Lead Arranger and Administrative Agent for a $242 million senior secured credit facility to Jordan Health Services, a portfolio company of Palladium Equity Partners.
The financing from CIT will be used to refinance Jordan’s existing debt and provide new capital to support future add-on acquisitions. CIT has backed the company since 2007. “This financing will help consolidate our financial position as well as add flexibility for future acquisitions as we grow our footprint and patient populations,” said CEO Scott Herman. “CIT has been a long-term partner and holds extensive knowledge of our business and this industry.”
Jordan Health Services is a provider of personal care, case management, nursing, therapy, and hospice services in Texas, Oklahoma, Arkansas and Louisiana. The company has a team of over 17,000 professionals that provide care to more than 28,000 adult and pediatric patients daily. Jordan Health Services was founded in 1975 and is based in Dallas (www.jhsi.com).
“Since 2010, Jordan has expanded from 28 locations in Texas to about 90 locations in four states serving more than 28,000 patients a day. With a diversified service offering, Jordan is well-positioned as a leading consolidator within the home care industry, having completed over 20 acquisitions since 2010. CIT’s financial support and expertise has been instrumental to Jordan’s growth over the years, and we appreciate their continued collaboration,” said Daniel Ilundain, a Principal of Palladium.
“As the US population continues to age, demand for the services offered by Jordan is expected to grow. Jordan has a strong reputation driven by their quality service, continuum of care programs and utilization of technology-enhanced clinical tools. Palladium has provided Jordan important financial and strategic support as they pursue these opportunities,” said William Douglass, Group Head and Managing Director, CIT Healthcare Finance.
CIT Healthcare Finance is part of CIT Corporate Finance which provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $65 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).
“We have enjoyed working with the Jordan and Palladium teams on this transaction and look forward to supporting them further as they pursue Jordan’s growth objectives,” said Will Duke, Managing Director, CIT Healthcare Finance.
Palladium invests from $50 million to $150 million of equity in companies that have $10 million to $75 million of EBITDA. Sectors of interest include business services, consumer, food, financial, healthcare, industrial, energy, and media. Palladium has a focus on companies that operate in the US Hispanic market. Since its founding in 1997, Palladium has invested over $1.5 billion of capital in more than 25 platform investments and completed over 50 add-on acquisitions. The firm is based in New York (www.palladiumequity.com).
© 2016 Private Equity Professional • 9-21-16
