One of New York City's largest healthcare systems has received a $320 million senior secured credit facility from GE Healthcare Financial Services. The funding will help the hospital operator transition out of Chapter 11 bankruptcy.
Under GE Healthcare Financial Services' financing, Saint Vincent Catholic Medical Centers of New York will receive a $50 million revolving credit facility and a $270 million real estate-based term loan, GE said in a press release.
GE provided a debtor-in-position credit facility to Saint Vincent in December 2005. The new facility will help the healthcare system refinance this debt, fund reorganization efforts and provide liquid funds for working capital and other corporate needs.
"We have reached the turning point in our reorganization, and we are now focused on the future and our abilities to provide higher quality medical, behavioral health, and continuing care to our patients," said Alfred E. Smith IV, chairman of Saint Vincent Medical Centers' Board of Directors. "This financing positions Saint Vincent’s to execute our vision of becoming a smaller but stronger healthcare system serving the people of New York."
David Varhol, managing director of GE Healthcare Financial Services' Corporate Finance group, said that in a short period of time, Saint Vincent's senior management were able to "(T)ransform a critical health provider from an entity that was generating significant losses into a health system generating positive cash flow with a bright future."