NXT Capital announced last Thursday (14 April) that it is providing a $61 million senior secured debt facility to Eyecare Service Partners (ESP). NXT was the sole lead arranger and administrative agent for the transaction, which included funding for add-on acquisitions at the end of the facility. Sources say the loan is on a five-year maturity.
An NXT spokesman declined to comment.
Twin Brook Capital Partners, the Angelo, Gordon & Co. direct lending subsidiary, is also investing in a portion of the debt, though further details couldn't be learned by press time.
ESP, a Towson, Maryland-based portfolio company of Varsity Healthcare Partners, consolidates regional primary and secondary eye care services and surgical practices. The company has brought in partner institutions in Delaware, Colorado, Maryland and California and plans to use the NXT funds for growth capital and to fund future acquisitions.
Varsity Healthcare is a private equity firm focusing on healthcare businesses. It typically works with existing multi-site providers with between $5 million and $15 million EBITDA for whom it can be the first institutional investor. The company was founded by David Alpern and Kenton Rosenberry and maintains offices in Los Angeles and Stamford.
NXT is a Chicago-based mid-market lender with groups focused on corporate, real estate and equipment finance. The company was started by former employees of Merrill Lynch Capital and Heller Financial and recently reached a first close on $215 million on its Senior Loan Fund IV. NXT's investors include the Teacher Retirement System of the State of Illinois, the Ontario Teachers' Pension Plan and Stone Point Capital. It also maintains offices in Atlanta, Charlotte, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco and Stamford.