Financing

Golub Capital has provided $27.5 million in subordinated notes and co-investment equity in connection with the acquisition of 54 Fresenius Medical Care clinics by DSI Renal. DSI Renal is a portfolio company of Frazier Healthcare and New Enterprise Associates.

DSI Renal is a provider of dialysis services to patients suffering from chronic kidney failure. With this acquisition, DSI Renal will operate 85 clinics across 23 states and provide care to more than 6,500 dialysis patients. The company is based in Nashville, TN (www.dsi-corp.com).

“Working with Golub Capital’s Healthcare Finance team was a real pleasure. They proved to be a value-added partner with whom we could discuss preliminary ideas, as we ultimately closed the deal using structure and economic terms similar to what they recommended early in the process. We look forward to working with them again,” said Brian Morfitt, a Partner at Frazier Healthcare.

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 under management. Frazier Healthcare was founded in 1991 and has offices in Seattle, WA and Menlo Park, CA (www.frazierhealthcare.com).

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 also underwrites and syndicates first lien loans up to $200 million. Golub Capital’s will hold up to $100 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. In addition to its New York headquarters, Golub also has offices in Atlanta, GA; and Chicago, IL (www.golubcapital.com).

“The Golub Capital Healthcare Finance team has a very positive view on the dialysis space, having invested in the sector multiple times. We started talking to Frazier Healthcare about their own interest in the sector mid-last year, so this investment represents one that developed very nicely over time,” said Stefano Robertson, a Managing Director and Head of Healthcare Finance at Golub Capital. “Throughout the process, both Frazier Healthcare and NEA exhibited their deep domain knowledge and experience dealing with multi-faceted transactional issues. We look forward to working closely with both sponsors throughout the course of the investment, and to helping DSI Renal execute their business plan.”

NEA 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 $11 billion in committed capital. NEA has offices in the Washington, DC; Menlo Park, CA; and New York, NY (www.nea.com).

Main Street Capital announced today that it has invested $6.8 million in AmeriTech College Operations, a healthcare focused for-profit college. Main Street’s investment in AmeriTech consists of $6.8 million in first lien, senior secured debt. Main Street’s investment provides growth financing to expand the school’s healthcare programs and its development of baccalaureate degree programs.

AmeriTech is a private, for-profit college focused on providing healthcare training programs such as nursing, medical assisting, medical billing and coding, surgical technicians, and dental assisting. With two traditional campuses located in Draper, UT, and Provo, UT, and through its online programs, AmeriTech offers associate degrees as well as diplomas and is accredited with the Department of Education and nationally accredited with specialty healthcare education accrediting agencies. The company is headquartered near Salt Lake City, UT (www.ameritech.edu).

Main Street Capital provides long-term debt and equity capital to middle market and lower middle market companies in diverse industry sectors that generally have annual revenues ranging from $10 million to $100 million. Main Street generally provides “one stop” financing alternatives within its lower middle market portfolio. The firm is based in Houston, TX (www.mainstcapital.com).

Prospect Capital Corporation has provided $31.1 million of senior secured debt to VanDeMark Chemical, a specialty chemical manufacturer and a portfolio company of Buckingham Capital Partners. “Prospect’s responsiveness enabled an on-time execution of a complex refinancing that we desired to close before year end,” said Albert Naggar, a Managing Partner of Buckingham. “We look forward to working with Prospect in the future.”

VanDeMark manufactures phosgene and phosgene derivatives to serve the global pharmaceutical, agricultural-chemical, polymer, and fine chemical industries. The company is based in Lockport, NY (www.vdmchemical.com).

“We are delighted to support Buckingham in its recapitalization of VanDeMark,” said Bart de Bie, a Managing Director with Prospect Capital Management. “Prospect has significant domain expertise in the specialty chemicals industry in addition to other industry verticals.”

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 wide array of industries and is effectively industry agnostic. Prospect Capital is located in New York, NY (www.prospectstreet.com).

Buckingham Capital Partners makes control equity investments of $2 million to $15 million in leveraged and management buyouts and recapitalizations of industrial and manufacturing companies in the $10 million to $100 million valuation range. The firm is based in New York, NY (www.buckinghamcapital.com).