June 13, 2013
Fifth Street Finance Corp. (Nasdaq: FSC) has closed its portfolio company acquisition of Healthcare Finance Group, LLC. Fifth Street invested $114 million to effect the acquisition, financing the purchase with available liquidity, including operating cash and borrowings under Fifth Street’s existing credit facilities. Fifth Street expects the acquisition to be immediately accretive to net investment income.
An asset-based and cash flow term loan lending specialist, HFG has long-standing expertise in the healthcare industry. Since inception, HFG has financed in excess of $21 billion in receivables. HFG’s sophisticated and highly scalable operating platform includes an internally-developed technology system that facilitates daily credit monitoring and insight into customer performance. The proprietary system is highly adaptable, with additional capabilities that can be leveraged as the platform continues to expand.
“We believe this strategic investment will reinforce Fifth Street and HFG’s respective healthcare expertise,” noted Leonard M. Tannenbaum, Fifth Street’s Chief Executive Officer, adding, “We expect that this acquisition will provide extraordinary opportunities for platform growth — especially as we assist HFG in exploring alternative applications for its proprietary collateral and loan performance technology.”