With $128 million of new debt and equity capital, HealthCare Financial Partners, based in Chevy Chase, Md., is diversifying its accounts receivable financing business.
"Our vision," said John Delaney, the company's chairman, chief executive officer and president, is to become "the lender of choice to small- to middle-market healthcare companies." Delaney is positioning the company to offer other types of asset-based financing to providers in the nursing home, home healthcare and physician practice sectors.
HealthCare Financial began doing business in September 1993 as HealthPartners Financial Corp. The company adopted its new name last September and went public in November, offering 2.1 million shares at $12.50 a share. The initial public offering, managed by Montgomery Securities, raised $28 million, including additional shares sold to cover over-allotments.
HealthCare Financial used $21.8 million of the proceeds to buy out its limited partners, who controlled $79.6 million of advances against healthcare receivables.
Recently, HealthCare Financial secured $100 million of debt financing from ING Barings U.S. Capital Markets under an investment-grade, asset-backed commercial paper program. The debt financing, along with the balance of the proceeds from the IPO, will pay for acquisitions and provide additional capital for financing accounts receivable, the company said.
Last month, HealthCare Financial said it signed a letter of intent to invest in a new company that's acquiring the assets of Skokie, Ill.-based Health Charge Corp. and its sister company, Health Charge Information Technology Corp., also in Skokie.
Under terms of the agreement, HealthCare Financial will provide $3.7 million of debt financing for the acquisition, which is being led by a new Health Charge management team called MapleCrest Partners. HealthCare Financial will receive warrants to acquire 35% of Health Charge "for a nominal consideration" and will have right of first refusal on any sale of Health Charge assets or stock.
Health Charge offers a private-label credit-card program to hospitals and other medical providers. Health Charge Information Technology provides business-office systems consulting services to hospitals.
Shares of HealthCare Financial are traded on the NASDAQ system.