CapX Partners announced the closing of a $4 million senior term loan to MediLogix, a fast-growing player in the durable medical and respiratory equipment field. With management focused on several key initiatives to support growth — including building and expanding its national geographic footprint, hiring, and increasing their brand awareness — they needed to keep up with projected inventory demands.
MediLogix (Denver) is a rapidly growing healthcare services company engaged in providing on-demand rental services of durable medical equipment and respiratory equipment to skilled nursing, rehabilitation, long-term acute care facilities and hospice providers. The company has long-term contracts with skilled nursing operators and hospice providers. MediLogix operates 24/7/365 and provides rental equipment, typically within 4 hours of a customer request, from one of its numerous service centers.
The company’s business model generates recurring revenue and reliable cash flow with visibility of future revenues and earnings. Management has focused on several key initiatives to support growth including building and expanding its geographic footprint nationally, increasing brand awareness, and attracting and hiring a highly skilled team of professionals. The company focuses on taking a consultative approach that uses innovative business intelligence tools to help customers make good decisions, manage their rental usage efficiently, and ultimately realize meaningful cost savings.
“CapX appreciates MediLogix’s customer-centric platform created by Harry Felber and his dedicated investor group. MediLogix provides high quality, durable medical equipment to its customers and stands out for its responsiveness and willingness to help customers manage their equipment needs efficiently. The Company’s proven platform, management acumen, and pipeline of new business, convinced us to invest in MediLogix’s next phase of growth. We look forward to supporting MediLogix in the years ahead,” says Stephen J. Healey, Managing Director, CapX Partners.
CapX recognized MediLogix's success in the on-demand rental services of durable medical equipment as well as its high potential for growth. In order to meet MediLogix’s projected inventory demands, CapX provided a customized senior term loan. This facility will fund new durable medical equipment, fulfilling the Company’s increased customer demands. CapX’s high touch coordination efforts will enable MediLogix to achieve all of its financing needs in a timely and efficient manner.
“MediLogix approached CapX with specific needs in a new debt structure. As we grow, there is a lag time from capital investments to the start of the associated revenue. CapX listened carefully and proposed a loan structure that addressed the way we do business that made a lot of sense for MediLogix," says Harry Felber, President, MediLogix, LLC.
Founded in 1999, CapX Partners is a specialty finance company that focuses on private equity and venture backed portfolio companies looking for debt financing in the $2 million to $20 million range. CapX provides senior and mezzanine debt including lease lines and favors manufacturing, distribution, technology, energy and healthcare industries with an emphasis on revenue producing fixed assets.