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Golub Capital Provides $250MM Facility To Support NetSmart Recap

March 02, 2015, 07:39 AM
Filed Under: Healthcare

Golub Capital announced that as joint lead arranger, joint bookrunner and senior administrative agent, it provided a $250 million senior credit facility to support the recapitalization of NetSmart by Genstar Capital, LLC ("Genstar"). ABL Advisor has also learned that Macquarie is the joint-lead with Golub. Macquarie CAF Lending also acted documentation agent and Golub acted as administrative agent. An accompanying second lien was privately placed.

The proceeds of the facility were used to refinance existing debt and for a dividend recap for the Genstar portfolio company.

Established in 1968, NetSmart is committed to helping health and human services providers deliver effective, outcomes-based care with NetSmart's CareFabric™ solution. CareFabric™ is a tightly woven framework of innovative clinical and business solutions and services that supports integrated, coordinated delivery of health services across the spectrum of care. More than 23,000 client organizations, including 450,000 care providers and more than 40 state systems, use NetSmart solutions to help improve the quality of life for more than 25 million people each day.

"We are excited to continue our partnership with NetSmart and Genstar," said Troy Oder, Managing Director of Golub Capital.  "This is our fourth transaction in support of NetSmart, and our capital commitment to the Company has increased significantly since we first became involved in 2010.  We remain impressed with the strength of the management team, the Company's exciting growth prospects, and Genstar's impressive support of the platform."

"Golub has been a consistent and reliable growth partner throughout our investment in NetSmart," said Roman Margolin, Principal at Genstar.  "We have been impressed with Golub's responsiveness, efficiency and ability to provide flexible financing solutions capable of growing alongside our investments.  We look forward to expanding our relationship with Golub in the future."

Golub Capital's award winning middle market lending team structures financing solutions with hold positions of up to $250 million. The team also underwrites and syndicates senior credit facilities and a proprietary suite of GOLD (one-loan debt) facilities, up to $500 million. As of YE 2014, Golub Capital has been #1 for four years in a row for senior secured loans of up to $100 million for leveraged buyouts (according to Thomson Reuters LPC and internal data; based on number of deals).

Genstar Capital is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating executives and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar manages funds with total capital commitments of over $3 billion and targets investments focused on selected sectors within the financial services, software, industrial technology, and healthcare industries.

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