NEW YORK, N. Y., November 16, 2016 – Webster Bank announced today that it has provided $20 million in senior credit facilities to Medical Arts Sanitarium, Inc., dba Cornerstone Treatment Facilities Network (CTFN), a leading provider of substance use disorder treatment services, in support of CTFN’s change of control and ownership conversion to an Employee Stock Ownership Plan (ESOP).
Proceeds of the ESOP transaction funded the redemption and sale of shares to the ESOP and a concurrent acquisition of an inpatient treatment facility from a related party. Webster Bank, as sole lender, provided $20 million in senior debt along with $2 million in mezzanine notes from Oxer Capital. The transaction closed on Nov. 1, 2016.
“The combination of Webster Bank’s strong relationship culture highly experienced banking team, demonstrated healthcare expertise, and ESOP experience made them uniquely qualified to partner with CTFN on this very important transaction,” said Tom Puzo, chief executive officer of Cornerstone.
“As a leader in providing innovative solutions and banking services to the Middle Market, we are pleased to partner with CTFN to support this strategic transaction and the company’s continued growth,” said Abby Parsonnet, New York regional president, Webster Bank.
“The ESOP created significant liquidity for shareholders while seamlessly transitioning ownership and control to a superb management team who will continue to drive growth and the delivery of vital healthcare services to the New York Community,” added Steve Dowe, senior vice president, Webster Bank.
Since its launch three years ago, Webster’s Metro New York commercial banking team has experienced tremendous growth in having grown a portfolio of 35 client relationships representing over $400 million in committed capital for middle market companies across diverse industries.
About Webster
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $25.6 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust, and investment services through 176 banking centers and 349 ATMs. Webster also provides telephone banking, mobile banking, and Internet banking. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation; the equipment finance firm Webster Capital Finance Corporation; and HSA Bank, a division of Webster Bank, which provides health savings account trustee and administrative services. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.
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