Gemino Healthcare Finance, a leading provider of senior loans to healthcare service providers, announced it has provided a $10 million revolving line of credit to Landmark Holdings of Missouri, LLC, a multi-state operator of six long-term acute care hospitals. The proceeds are being used to refinance existing debt and for working capital purposes.
Gemino partnered with Praesidian Capital who invested $12 million in senior subordinated debt in Landmark.
Based in Cape Girardeau, Missouri, Landmark was founded in 2006 by Dr. William Kapp III. Landmark’s free-standing LTACHs are located in Cape Girardeau, Joplin and Columbia, Missouri and in Athens, Georgia. In 2014, they opened a new hospital in Salt Lake City, Utah and another in Savannah, Georgia. A seventh facility, located in Naples, Florida, is scheduled to open in September 2015.
“Landmark has distinguished itself as the dominant provider of long-term acute care in each of the regions in which we operate,” Dr. Kapp, CEO, stated. “The industry is tightly regulated given that all beds are Medicare certified, so we have some confidence in maintaining that competitive advantage in all of our operations. We are very pleased to partner with Praesidian and Gemino to create a new capital structure and operating funds to support our growth plans.”
Tom Schneider, CEO of Gemino, said, “Dr. Kapp has done an impressive job building Landmark’s network of hospitals. We look forward to working with him and a very experienced management team. We are also pleased to have this opportunity to partner with Praesidian Capital on another healthcare transaction.”
Creative Health Capital, LLC (CHC) acted as exclusive advisor to Landmark in arranging the senior and subordinated debt. “We have worked with Dr. Kapp and Landmark over several years and are pleased to have been able to assist in raising this capital to help the Company achieve its growth objectives,” noted Dan Brown, Managing Director at CHC. “Both Gemino and Praesidian were able to work cohesively to provide a tailored capital solution, and we are confident they will be great partners for Landmark going forward.”
Landmark was formed in 2006 to establish regional hospital referral centers for medically complex patients in need of intensive post-acute care. Landmark established its first regional referral long term acute care hospital in Cape Girardeau, Missouri in 2006 and has steadily grown to six facilities in three states. Landmark’s seventh facility will open in Southwest Florida in September 2015. Each Landmark hospital has experienced, proven management teams that are expected to remain in each facility. The six hospitals have approximately 600 employees. For more information, please see www.landmarkhospitals.com.
Based in Philadelphia, PA, Gemino Healthcare Finance is a specialty finance company with an exclusive focus on providing senior secured loans to healthcare service providers throughout the U.S., with typical financing needs ranging from $2 million to $25 million in the form of revolving lines of credit and term loans. Gemino is a portfolio company of Solar Senior Capital Ltd., a leading publicly traded business development company.
Praesidian Capital is an innovative private investment firm focused on providing senior and subordinated debt along with growth capital to private lower middle market businesses in the United States, United Kingdom, Germany, and selectively in Northern Europe. Praesidian invests in established, small and mid-sized companies often in connection with management buyouts, recapitalizations and refinancings. Based in New York City with an office in London, Praesidian manages nearly $1 billion in committed capital.
Creative Health Capital is a boutique healthcare investment bank based in Chicago, Ill. Since 2001, the firm has been instrumental in arranging capital for growing health care providers as well as representing health care companies in strategic transactions including mergers and acquisitions.