Healthcare - Financing Transactions

Overview

From ever-changing laws, to expansion of healthcare access and growing patient demands, hospitals and healthcare providers need available capital more than ever. Adding to that, the pressure to contain costs while improving quality care puts restrictions on how much money hospitals can spend to improve patients’ health. Companies rely on this capital to survive and grow.

Blank Rome’s healthcare finance attorneys have extensive experience in structuring, negotiating, and documenting complex healthcare financing transactions that can help you achieve your business objectives. 

Our attorneys counsel all types of healthcare providers (institutional, facility-based, and private practice), hospitals and suppliers (group and individual), pharmaceutical, and medical device manufacturers in organizational, structural, and commercial operations, as well as the large-scale lending institutions. In addition to representing healthcare operators and lenders, we serve as counsel to private equity funds and sources of venture capital in connection with investments in healthcare businesses.

With the continuing complexity of the legal landscape, healthcare clients benefit from the way our healthcare finance attorneys combine sophisticated commercial finance and lending experience with strong knowledge of contract, tax, real estate, securities, and healthcare law. 

How We Can Help

  • acquisition financing
  • asset-based finance
  • debtor-in possession financing
  • equipment leasing
  • leveraged cash flow loans
  • mezzanine loans
  • portfolio financing
  • project financing
  • revolver/letter of credit
  • second lien term loans

What Sets Us Apart

  • Chambers USA 2017 Tier 1 practice and individual attorney rankings for Banking & Finance. 
  • Sources tell Chambers that Blank Rome is: “A preeminent banking and finance practice that represents leading banks and lenders from across the region and country. Particularly well versed in complex financings in the middle and upper middle markets, and excels in asset-based finance, leveraged lease transactions and securitizations.”
  • Members of the team have served as primary outside counsel to many healthcare specialty finance lenders, including Capital One, Merrill Lynch Capital, CIT Healthcare Finance (and its predecessor HealthCare Business Credit), Capital Source, Goldman Sachs Specialty Lending Group, Congressional Bank and Siemens Financial Services. 

Experience

Hospital and Healthcare Service

  • Representation of a leading financial services company as lender in the $13.5 million secured revolving line of credit and the $16 million term loan to finance the acquisition of two hospitals located in Los Angeles, California.  The structure also included a sale and leaseback of the real estate associated with the hospital operations.
  • Representation of debtor-in-possession agent and lender in the $25 million hospital system Chapter 11 for Brooklyn Hospital Center and Caledonian Health Center Inc.
  • Representation of national healthcare finance company in the $450 million term loan and $28 million line of credit to healthcare services provider for financing and acquisition of 72 nursing homes in six states.
  • Representation of national healthcare finance company in conjunction with the financing of a number of financial and strategic acquisitions involving hospitals, nursing homes, hospice providers, and home care companies.

Outpatient, Long-Term and Senior Care

  • Representation of a leading financial services company as co-lender in the $15.9 million secured revolving line of credit and term loan for a developer, owner and manager of skilled nursing facilities in Mississippi, Louisiana and Tennessee.
  • Representation of agent in the $117.5 million loan to skilled nursing and assisted living facilities in Texas and Kentucky.
  • Representation of leading commercial lending, investment and asset management business in the $379 million mezzanine loan and the $250 million senior loan related to the merger and privatization of one of the nation’s largest long term care providers.
  • Representation of national healthcare finance company in the $170 million term loan and the $14.5 million line of credit to finance the purchase of 28 nursing homes.

Manufacturers and Distributors

  • Representation of an integrated specialty healthcare company in the $79 million loan to provide acquisition financing and on-going working capital.
  • Representation of finance affiliate of a global investment bank as agent in the $65 million revolver facility to an operator of retail institutional pharmacies.
  • Representation of finance affiliate of a global investment bank in the $40 million revolver facility to a specialty pharmaceutical/medical device company.
  • Representation of finance affiliate of a global investment bank in the $5 million revolver/letter of credit facility to a supplier of respiratory medications and supplies through a mail-order pharmacy.