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GE Capital HFS Provided $9B in Financing in 2013

January 14, 2014, 07:29 AM
Filed Under: Healthcare

GE Capital’s Healthcare Financial Services business ended 2013 as one of the most active capital providers in the U.S. healthcare market, deploying approximately $9 billion in new commitments to customers in over 200 transactions.  For the fourth consecutive year, GE Capital was the top lead-arranger by volume and number of transactions completed for all financings under $500 million in U.S. healthcare leveraged finance.

Customers across a broad array of healthcare subsectors utilized GE Capital financing to make acquisitions, refinance existing debt, support working capital needs and fund growth initiatives.

“Despite continued uncertainty and volatility in the healthcare sector in 2013, we delivered critical capital to customers across multiple sectors. Our clients can rely on us for a combination of industry expertise, a strong balance sheet and robust capital markets capabilities,” said Darren Alcus, president and CEO of GE Capital, Healthcare Financial Services. “Looking at the year ahead, we expect more M&A activity and continued market consolidation as healthcare executives seek strategic opportunities to maximize efficiencies and scale.”

In 2013, GE Capital, Healthcare Financial Services utilized the expertise of its dedicated teams to meet the needs of customers across three primary segments:

Corporate Finance:

“There is no doubt that we will continue to see changes in the healthcare industry in the year ahead and we are committed to helping our customers navigate this evolving landscape,” said Al Aria, senior managing director for GE Capital, Healthcare Financial Services’ corporate finance team.  “Our longstanding commitment to the space and strong balance sheet mean we are well positioned to help customers meet their business objectives, even during these less certain times. As the top lead-arranger of debt to middle-market healthcare companies for the fourth consecutive year, we look forward to delivering again for our customers in 2014.”

Recent Transaction: GE Capital, Healthcare Financial Services recently served as administrative agent on a $115 million senior secured credit facility for Medical Depot, Inc., which does business as Drive Medical. Proceeds were used to refinance existing debt and will support ongoing working capital and growth needs.

Healthcare Real Estate:

“While reimbursement at the federal and state level is more stable, there are still concerns about fiscal health.  When combined with healthcare reform, the healthcare real estate sector faces continued uncertainty, but we expect it to remain active,” said James Seymour, senior managing director of GE Capital, Healthcare Financial Services’ real estate financing team.  “Borrowers don’t want a lender that is in and out of the market.  Our Healthcare Real Estate business has been a leading market participant across industry cycles for the last 15 years.  Looking ahead, we will continue to utilize our significant balance sheet and relationships across the industry to provide flexible financing for our clients.”

Recent transaction: GE Capital, Healthcare Financial Services provided a $65.25 million senior secured first mortgage to MB Real Estate, a medical office developer and acquirer.  The loan is being used to finance a seven medical office building portfolio totaling 379,000 square feet in NY, NC, TX and CA.

Life Sciences:

“Life sciences companies benefitted from strong private and public equity markets in 2013, which drove a lot of demand for our debt financing,” said Anthony Storino, senior managing director for GE Capital, Healthcare Financial Services’ life science finance team.  “We expect another active year ahead for flexible debt financing to rapidly growing companies across pharmaceutical, medical device and other healthcare sectors.”

Recent transaction: GE Capital, Healthcare Financials Services served as administrative agent on a $10 million senior secured multi-draw term loan for Sonitus Medical, Inc., which intends to use the financing primarily for additional working capital as they continue to expand their commercialization efforts.

With in-depth industry knowledge and expertise, GE Capital, Healthcare Financial Services has provided more than $65 billion in financing over ten years to companies in over 45 healthcare sectors including senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical devices.  

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