FOR IMMEDIATE RELEASE
Bethesda, Md. (August 27, 2018) – Capital One Healthcare’s Corporate Finance group resumed its position as the No. 1 lead arranger of healthcare leveraged loans by deal count in every category up to $1 billion, according to league tables produced with data from Thomson Reuters LPC. The corporate finance team closed 49 total transactions during the first half of 2018.
“The demand for value, along with demographic trends, continue to drive the US healthcare market and are creating exciting opportunities for healthcare companies and investors,” said Al Aria, Senior Managing Director, Capital One Healthcare. “Our team remains deeply committed to supporting their efforts.”
Capital One Healthcare is active across a broad range of healthcare sub-sectors—including long-term care, pharmaceuticals, medical devices, hospitals and outpatient services, healthcare IT, and medical properties—acquisition finance, recapitalizations and working capital needs.
“This has been an exceptional year so far for the healthcare market,” Aria said. “M&A activity continues to be robust, thanks to ample investor confidence and ready access to capital.” U.S. leveraged buy-out volume set post-crisis records, while institutional investors, CLOs and loan funds all contributed to ample investor liquidity. But even with this degree of liquidity, Aria pointed out, sponsors are showing discipline as purchase price multiples remain stable.
“In the two plus years since Capital One acquired the GE healthcare financing platform, we have focused on delivering for our customers by strengthening our team, adding new product capabilities, building our infrastructure, and streamlining our systems,” Aria said. He noted that Capital One’s unitranche product has proven to be particularly attractive. In the second quarter alone, the Bank closed three unitranche deals totaling $755 million in commitments.
In March, Capital One served as the agent, sole lead arranger and bookrunner for $275 million in aggregate first lien credit facilities and a $45 million second lien credit facility for Baymark Health Services. This facility was used to finance a large acquisition of 70 opiate treatment locations. Following the acquisition, BayMark will operate a total of 167 behavioral health programs; inclusive of 145 opioid treatment programs, 8 office-based buprenorphine assisted treatment programs, 13 outpatient detoxification facilities and one residential treatment location across 26 states and 1 province in North America.
In April, Capital One served as the administrative agent for a $375 million senior secured unitranche credit facility for AccentCare, Inc., one of the largest for-profit home healthcare providers in the United States and a portfolio company of Oak Hill Capital Partners. The facility allowed AccentCare to refinance existing debt at competitive pricing and provided the company additional capacity to finance future acquisitions. AccentCare has been a customer of Capital One Healthcare since 2010.
In May, Capital One served as the administrative agent, joint lead arranger and joint bookrunner for a $190 million senior credit facility for Longs Pharmacy Solutions—a portfolio company of Tailwind Capital. This facility allowed Longs to simplify its capital structure, reduce interest expense, and continue expansion of pharmacy services to patients with complex medical conditions and chronic illnesses.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $248.2 billion in deposits and $364.0 billion in total assets as of June 30, 2018. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.
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