Prospect Capital provided $27 million of secured second-lien debt financing for CHC Companies, Inc. (CHC), one of the largest outsourced providers of healthcare services to correctional facilities in the United States. The financing was used, together with proceeds from senior debt facilities, in support of the acquisition of CHC by GTCR, a private equity firm.

CHC provides primary care, dental, behavioral, pharmacy, utilization management, and other healthcare services to public and private prisons and jails across 26 states. CHC offers a full suite of healthcare services for the continuum of custody, which extends care at the point of arrest through incarceration and release. The company's continuity of care expertise is a key competitive advantage, placing CHC at the forefront of a paradigm shift in the correctional healthcare market towards a pre-custody, custody, and post incarceration model.

"Prospect is pleased to have been selected by GTCR for the lead role to provide the second lien financing for this important transaction," said Geoffrey Chang, managing director at Prospect Capital Management.

Founded in 1980, GTCR is a private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, and Information Services & Technology industries.