CRG’s third healthcare fund has closed a $204 million asset-backed securities financing. Goldman Sachs was the structuring and placement agent.
Correction: An earlier headline and report of this news item misstated the details of the fund. CRG raised $204 million in asset-backed financing, not equity capital, for its third healthcare fund. That information has since been corrected.
NEW YORK, June 26, 2018 /PRNewswire/ — CRG, a premier healthcare-focused investment firm, today announced the closing of a $204 million financing on behalf of CRG Partners III, L.P. and certain of its parallel investment vehicles (collectively, “Fund III” or the “Fund”). The transaction was completed on June 25, 2018.
The securitization – or Asset-Backed Securities financing – is the third such financing completed by CRG since 2016 and reinforces CRG’s continued strong access to the capital markets. This financing builds upon the Fund’s $355 million financing, which closed in July 2017, and brings the total long-term leverage for the Fund to $559 million. Sold through a private placement offering, the financing was substantially oversubscribed and the notes were purchased by a broad syndicate of sophisticated institutional investors, including existing lenders plus several new investors.
Mike Weinmann, a Partner of CRG, commented, “This transaction strengthens our ability to offer attractive long-term financing solutions to healthcare companies. With each subsequent financing, CRG has continued to broaden its investor syndicate and achieve attractive financing terms, helping to enhance risk-adjusted returns for its limited partners. The transaction further differentiates CRG as a healthcare investor and improves our cost of capital advantage in meeting the growth capital needs of the industry.”
Goldman Sachs & Co. LLC acted as structuring and placement agent.
CRG is a premier healthcare investment firm that has committed more than $3 billion of assets across three funds to date. The firm seeks to invest between $20 to $300 million in companies across the healthcare spectrum, including: medical devices, biopharmaceuticals, tools & diagnostics, services and information technology. CRG provides growth capital in the form of long-term debt and equity to support innovative, commercial-stage healthcare companies that address large, unmet medical needs. The firm partners with public and private companies to provide flexible financing solutions and world-class support to achieve exceptional growth objectives with minimal dilution. For more information, please visit www.crglp.com.