Capital One and HPS complete first joint unitranche loan

The partnership provided the term loan and revolving facility to a medical firm.

Capital One and HPS Investments have extended a $300 million senior secured credit facility to a healthcare education company through the two financial firms’ unitranche joint venture.

The deal, which consisted of a $290 million term loan and a $10 million revolving credit facility, marks the maiden transaction for the Capital One’s ULTra unitranche loan programme, which provides first lien loans to mid-market healthcare companies, according to a statement released Wednesday by Capital One.

HPS provided the majority of the $290 million term loan, offering $250 million, while Capital One served as lead arranger and administrative agent on the deal. No further details were disclosed.

“So far in 2017, we’ve continued to see a strong pipeline of M&A across most Healthcare sectors, as core industry growth remains stable even amid some regulatory uncertainty,” Al Aria, a senior managing director at Capital One Healthcare, said in an email.

HPS were not immediately available to comment further.

Overall, the healthcare lending platform at the Virginia-based financial institution has provided loans to senior housing, healthcare services, pharmaceuticals, medical devices, healthcare IT and medical offices. The debt products support acquisitions, refinancing and company growth.

Capital One acquired its healthcare debt platform from GE Capital for $9 billion last year and renamed it Capital One Healthcare, Private Debt Investor reported in August.

The parent company, Capital One Financial, had $348.5 billion in total assets as of 31 March, according to the statement.

New York-based HPS is a global investment firm with a focus on below-investment grade debt, according to its website. As of March, the firm had $39 billion of assets under management. HPS was originally formed as a unit of Highbridge Capital Management, a subsidiary of JPMorgan. Principals from HPS acquired the unit from JPMorgan in In March 2016.