Capital One Healthcare’s Corporate Finance group maintained its position as the No. 1 lead arranger of healthcare leveraged loans by deal count for transactions up to $1 billion for the first half of 2019, according to league tables produced with data from Thomson Reuters LPC. The team closed 12 total transactions.
“The US healthcare market continues to provide a wide array of 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.
"M&A loan activity is down from last year, driven in part from high valuations,” said Aria. “However, the supply side has moderated with CLO issuance in line with last year. Deals are getting done on very aggressive terms and pricing, and the middle market in particular continues to be competitive as investors look to put money to work with fewer opportunities."
“Capital One is focused on delivering for our customers by strengthening our team, adding new product capabilities, building our infrastructure, and streamlining our systems,” Aria said. “We look forward to a strong second half of the year working together with our clients.”
Noteworthy Transactions
In May, Capital One served as the administrative agent, joint lead arranger, and joint bookrunner for a $265 million senior secured credit facility for Surgical Specialties Corporation. The credit facility allowed Surgical Specialties to refinance existing debt at competitive pricing, provided greater flexibility for growth initiatives, and broadened the company’s following in the loan market. Surgical Specialties, a portfolio company of Vivo Capital and ZQ Capital, is a global, high-precision surgical products manufacturer that is primarily focused on the wound closure and ophthalmology markets.
In June, Capital One Healthcare served as Joint Lead Arranger and Co-Syndication Agent on a $425 million senior secured credit facility for R1 RCM Inc., a publicly traded (NASDAQ: RCM) leading provider of technology-enabled revenue cycle management services across hospitals, health systems and physician groups. R1 RCM is a portfolio investment of TowerBrook Capital Partners, and a new customer of Capital One Healthcare. The facility allowed R1 RCM to refinance existing debt at market pricing and provided additional capacity for future growth.