Enhanced Equity Funds, a lower middle-market healthcare focused private equity fund, has completed a refinancing of a $145 million senior secured credit facility for its portfolio company NextCare Holdings, a provider of urgent care and occupational medical services. Urgent care clinics provide a cost-effective and more efficient alternative to hospital-based or freestanding emergency rooms and the ability to treat a higher acuity patient than in a physician office.
A portion of the refinancing was used to finance NextCare’s expansion into the Tulsa market with the acquisition of two Tulsa-based urgent care companies, MedCenter and ERgent Care. NextCare, headquartered in Mesa, AZ, now operates 101 urgent care facilities in Arizona, Colorado, New Mexico, North Carolina, Ohio, Oklahoma, Texas and Virginia (www.nextcare.com). In addition, the credit facility includes $20 million of commitments set aside to fund future acquisitions.
Madison Capital acted as the Administrative Agent for the new credit facility, with commitments from NXT Capital, Siemens Financial Services, Business Development Corporation of America, Jefferies Finance, and Fifth Street Senior Floating Rate Corp.
“We are pleased with the favorable reaction from the marketplace and the continued strength of our company that enabled us to quickly complete this refinancing with key lenders and on terms favorable with the current marketplace,” said John Julian, Chief Executive Officer of NextCare. “We are currently evaluating a robust pipeline of high quality acquisition targets and this new facility gives us the flexibility to pursue those growth opportunities.”
Enhanced Equity invests from $10 million to $50 million in healthcare companies with annual revenues typically less than $100 million. The firm manages approximately $600 million of committed capital across two funds. Enhanced Equity was founded in 2005 and is based in New York (www.enhancedequity.com).
“The urgent care industry continues to be a rapidly growing healthcare sector that provides cost-effective, convenient medical services to consumers. NextCare is a leader in this area that continues to grow organically and through targeted acquisitions,” said Malcolm Kostuchenko, Managing Partner of Enhanced.
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-20-14