Antares leads healthcare tech dividend recap – exclusive

The $115 million senior credit facility for GTCR-owned XIFIN is Antares’ first healthcare lead left agency deal since the firm was bought by CPPIB.  

US lender Antares Capital lead arranged a $115 million senior credit facility for GTCR-backed XIFIN, a California healthcare technology company. The deal marks the first healthcare transaction with Antares in the lead left agency role since coming under the ownership of the Canada Pension Plan Investment Board (CPPIB)

In August, GE Capital sold Antares to the Canadian pension investment manager, as part of its divestiture of most of the GE Capital business units.

The $115 million package was co-arranged with fellow Chicago-based lenders Capital Source and NXT Capital, said David Brackett (pictured), co-head of Antares. The transaction will finance a dividend recap, meaning the private equity sponsor GTCR will use the refinancing to pay itself a dividend.

Brackett declined to reveal how much of the first lien loan Antares is holding. The transaction also included a second lien piece, for an undisclosed amount, arranged by insurer Northwestern Mutual. The tenor on the loan is about five to six years, Brackett said. He declined to comment on the leverage and cost of capital.

San Diego-based XIFIN is a provider of cloud-based software and services to diagnostic service providers. The company was acquired by GTCR in 2014. GE Capital Healthcare Financial Services (HFS) originally provided a loan to XIFIN in conjunction with the GTCR acquisition and has now been paid back in full, Brackett said.

Tyler Lindblad, chief risk officer at the GE Healthcare unit between 2013 and 2015, is now chief credit officer at Antares. Capital One agreed to buy the healthcare business from General Electric in August.

Antares is interested expanding its healthcare lending, as it represents 17 percent of the US economy and has attractive growth potential, Brackett told PDI . The firm is recruiting two additional vice presidents to do due diligence on the sector and expects healthcare transactions will grow to about 20 percent of Antares overall portfolio.

GTCR is a Chicago-based private equity firm focused on investing in growth companies in the financial services and technology, healthcare, information services and technology industries. Since its inception, GTCR has invested more than $10 billion in 200 companies. The Antares Capital business focuses exclusively on North American sponsor-backed transactions. The firm is headquartered in Chicago, with additional offices in major US cities. Brackett and John Martin co-lead the business as co-chief executives. The firm is arranging another lead left financing, to a sponsor it couldn't disclose, this week. And has several TMT transactions that are expected to close in the next few weeks, Brackett said.