Enhanced Equity refinances NextCare

The facility will enable the acquisition of a pair of urgent care facilities in Tulsa, Oklahoma. 

Healthcare specialist Enhanced Equity Funds refinanced its portfolio company NextCare Holdings with a new $145 million senior secured credit facility, the firm announced in a statement on Thursday.  

Madison Capital acted as an administrative agent on the facility. NXT Capital, Siemens Financial Services, Business Development Corporation, Jefferies Finance and Fifth Street Senior Floating Rate Corp committed to the facility.

NextCare provides occupational medical and urgent care services. The company operates 101 facilities throughout the US. Proceeds generated by the refinancing will enable NextCare to expand into the Tulsa, Oklahoma market through the acquisition of two urgent care companies – MedCenter and ERgent Care.

The credit facility includes $20 million of commitments for future acquisitions.

“We are pleased with the favorable reaction from the marketplace and the continued strength of our company that enabled us to quickly complete this refinancing with key lenders and on terms favorable with the current marketplace,” NextCare chief executive officer John Julian said in a statement. “We are currently evaluating a robust pipeline of high quality acquisition targets and this new facility gives us the flexibility to pursue those growth opportunities.”

NextCare has been active on the acquisition front over the last year. In August, the company announced that it had purchased 11 PrimaCare Medical Centers locations in the Dallas/Fort Worth area. In January 2013, the company opened a new clinic in Northern Arizona.  

Enhanced Equity Funds invests in the healthcare sector and manages approximately $600 million across a pair of funds. A spokesperson for the firm declined to comment.