Old Hill Partners Offers $ 10 Million Credit Facility to HealthGrowth Capital
DARIEN, Connecticut, April 13, 2020 (GLOBE NEWSWIRE) – Old hill provided 10 million dollars in the form of a senior secured revolving term credit facility at HealthGrowth Capital, LLC, one of the main direct lenders to community pharmacies. The facility was secured by a perfect first rank collateral on pharmacy loans.
“We are delighted to offer HealthGrowth this debt financing to fund its future growth. Given its extensive expertise in pharmacy lending and advisory services, we are confident in HealthGrowth’s ability to support its clients during these difficult times, ”said Peter Faigl, Senior Portfolio Manager at Old Hill. Faigl added, “We operate in a segment of the lending market that requires specialist knowledge and is avoided by large traditional banks due to regulatory constraints. Old Hill’s experience in the Asset Based Lending (ABL) industry allowed us to execute a transaction that offered a flexible financing solution for HealthGrowth that is not available from traditional lenders. We worked closely with Karl Kipke, CEO of Health Growth, and his team to craft a personalized transaction that aligned the interests of all involved. Kipke said, “Our business has matured considerably since our founding almost four years ago and we are delighted to have reached these important funding milestones as we take our business to the next level. This is a critical time when pharmacy owners need capital and other resources. to meet the needs of patients in the face of the global COVID-19 pandemic. “
Historically, Old Hill has provided asset-based lending solutions to borrowers seeking financing from $ 5 million to $ 35 million. The company structures senior secured debt in the form of term facilities, drawdowns and revolving credit for up to five years and loan-to-value ratios in the range of 35% to 85%. Types of guarantees include pools of loans or leases (specialized financing), receivables, inventory, machinery and equipment.
Old Hill Partners Inc., founded by John Howe, is an alternative asset manager focused on lending-to-asset transactions with small and medium-sized businesses. As an SEC-registered investment advisor, we operate at the crossroads of investors seeking attractive risk-adjusted returns and emerging companies seeking capital for expansion, acquisitions or growth.