DARIEN, Conn., April 13, 2020
Old Hill provided $10 million in the form of a senior secured revolving-to-term credit facility to HealthGrowth Capital, LLC, a leading direct lender to community pharmacies. The facility was secured by first lien perfected security interest in pharmacy loans.
“We are excited 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 capacity to support its customers in this time of need,” said Peter Faigl, Senior Portfolio Manager at Old Hill. Faigl added, “We operate in a segment of the lending market that requires specialized knowledge and that is being avoided by large traditional banks due to regulatory constraints. Old Hill’s experience in the asset-based lending (ABL) sector allowed us to execute on a transaction that offered a flexible financing solution for HealthGrowth that is not available from traditional lenders. We worked very closely with Karl Kipke, Health Growth’s Chief Executive Officer, and his team to craft a custom transaction that aligned the interests of all involved.” Kipke said, “Our business has matured significantly since our founding nearly four years ago and we are pleased to have reached these significant funding milestones as we take our company to the next level, this is a critical moment when pharmacy owners need capital and other resources to satisfy patient needs in the face of the COVID-19 global pandemic.”
Historically Old Hill provides asset-based lending solutions for borrowers seeking $5 to $35 million in financing. The firm structures senior secured debt in the form of term, draw down, and revolving-to-term facilities of up to five years and loan-to-value ratios in the range of 35% to 85%. Collateral types include pools of loans or leases (specialty finance), receivables, inventory, machinery, and equipment.
Old Hill Partners Inc., founded by John Howe, is an alternative asset manager focused on asset-based lending transactions with small- and medium-sized businesses. As an SEC-registered investment advisor, we operate at the crossroads of investors seeking attractive risk-adjusted yields and emerging companies seeking capital for expansion, acquisitions or growth.
Old Hill Partners Inc.
1120 Boston Post Road
Darien, Connecticut 06820
Phone: 203 656 3004