Capella Healthcare, which operates 13 community hospitals in the United States, has completed a public debt financing transaction worth $500 million.
Dan Slipkovich, founder and CEO of Capella, said the newly issued debt positions the Franklin, Tenn.-based company for future growth and allows Capella to lock in attractively priced long-term funding.
The transaction consists of $500 million in senior unsecured notes, due in 2017. Slipkovich said the proceeds would be used to refinance first lien credit facilities and a second-lien term loan.
Capella also reached agreement with lenders on a $100 million asset-based revolving credit facility.
With this debt financing and the ongoing backing of its equity partner, GTCR Golder Rauner of Chicago, Slipkovich said Capella now has access to significant resources for the expansion and improvement of its hospitals.
“Realigning our capital structure simply made sense and will allow us greater flexibility in pursuing our growth strategy,” he said. “Our plans for growth include expansion of services at our existing hospitals and selective acquisition of additional community hospitals.”
Capella operates 13 hospitals in mid-sized communities in seven states and has experienced more than 250 percent growth in revenue over the past three years.