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Gibraltar Business Capital Provides $15MM to True Health Diagnostics

Date: Dec 21, 2015 @ 07:22 AM
Filed Under: Healthcare

Gibraltar Business Capital recently completed a large "accordion" structured working-capital deal for a growing healthcare company.  This highly flexible line of credit is a great example of how Gibraltar's asset based lending model works creatively for companies in need, and the referral sources that recognize the challenges small businesses face today.

In this case, Gibraltar assisted True Health Diagnostics, a Dallas, TX-based outcomes-focused diagnostic laboratory services company, with a facility to fuel growth and take advantage of new business opportunities in the changing healthcare industry. Focused on identification of early-onset conditions that lead to cardiovascular disease and other chronic illnesses, such as diabetes, THD offers increasingly critical laboratory services and practice management solutions to help physicians and healthcare providers identify, prevent and manage the progression of health risks identified by their proprietary testing.

After initially seeking a $3.5 million facility for business expansion, True Health Diagnostics was presented with an exciting opportunity to acquire a major competitor out of bankruptcy. As a result the company needed Gibraltar to commit $15 million, nearly five times the original loan. Gibraltar was able to fulfill this significant request by closing on a creative “accordion” structure, which allows rising companies to pay as they go rather than all up front. In this type of deal documents contemplate a $15 million facility but start small and grow as the company grows. This line of credit, for example, transitioned from $3.5 million at close to $15 million in just six months.

Not only was Gibraltar able to close quickly on the initial draw, but its team effectively committed to a larger lending relationship while the acquisition was in process. Further facilitating its intent to build long-term partnerships, Gibraltar secured a syndication partner to fulfill the entire facility amount, while still leaving room for growth in the future. To date Gibraltar has increased the THD credit line three times.

Headquartered in Chicago, Gibraltar Business Capital is a privately held middle-market lender providing small- to medium-sized business owners fresh and accessible capital alternatives to a commercial bank loan. With fast, flexible asset-based lending and factoring solutions, Gibraltar delivers lines of credit and specialized funding facilities from $2 million to $10 Million that allow businesses to meet their objectives. Building on its 60-year history, Gibraltar Business Capital is a multifaceted company strategically positioned with the portfolio, infrastructure, personnel and resources to support its clients nationwide.

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