On Our Radar: Deals we are paying attention to for their impact on industry.
US HealthVest (USHV) received a $55 million senior secured term loan from Silicon Valley Bank to finance existing debt and fund expansion and construction of its behavioral health facilities to treat psychiatric illness and substance abuse.
The company works with existing medical providers such as hospitals to bring treatment programs to underserved communities, and some of its facilities rely heavily on Medicaid payments, according to press reports.
“SVB has been a great partner and its understanding of our industry and our business was critical in crafting and delivering flexible debt facilities that can scale with our future needs,” said Dr. Richard A. Kresch, the president and chief executive of US HealthVest.
The financing includes a $30 million first lien revolving line of credit and term loan from the bank, and a $25 million second lien term loan from a third party that was not identified.
The company previously raised $96 million of capital in three rounds of financing, according to Crunchbase.
Founded in 2013 by Richard A. Kresch, a psychiatrist and the founder of Ascend Health Corporation and Heartland Health Developments, US HealthVest operates seven behavioral hospitals across the U.S., in Washington, Illinois, and Georgia.
Peter Green is an award-winning business and investigative journalist based in New York.