Canadian private equity firm Penfund has provided an incremental US$7.5 million second lien term facility to Pediatric Services Holding Corp (PSA Healthcare), a provider of home nursing services to medically fragile children in the United States. The facility, together with an incremental US$25.0 million first lien term facility, were used to support PSA’s buy of Care Unlimited, a provider of pediatric home nursing services in western Pennsylvania. Last year, Penfund invested US$37 million of debt and equity in Atlanta, Georgia-based PSA. This was announced shortly after the company’s acquisition by U.S. private equity firm J.H. Whitney Capital Partners.
Penfund Announces Follow-On Investment in PSA Healthcare
TORONTO, ONTARIO–(Marketwired – Feb. 17, 2016) – Penfund, an independent provider of junior capital to middle market companies located in the United States and Canada, announced today the completion of an incremental U.S. $7.5 million 2nd lien term facility in Pediatric Services Holding Corporation operating as PSA Healthcare (“PSA”). PSA is a portfolio company of J.H. Whitney Capital Partners LLC’s private equity funds (“J.H. Whitney”).
The proceeds of the financing together with the proceeds of an incremental U.S. $25.0 million 1st lien term facility were used in support of PSA’s acquisition of Care Unlimited, a provider of pediatric skilled and unskilled home nursing services in western Pennsylvania.
Headquartered in Atlanta, Georgia, PSA predominantly provides critically-needed home nursing services to medically fragile children. The company operates through 70 offices across 17 states, employs over 5,000 nurses and other caregivers, and provides care to more than 2,500 patients.
John Bradlow, a partner at Penfund, stated “We are very pleased to be providing additional support to J.H. Whitney in their execution of PSA’s growth strategy. We believe the synergistic acquisition of Care Unlimited will strengthen PSA’s already strong presence in Pennsylvania.”
About PSA Healthcare
PSA is a national home healthcare company managed predominantly by clinicians. PSA’s services provide care for medically fragile individuals of all ages in the comfort of their homes. PSA has more than 5,000 skilled caregivers, providing professional, high quality, private duty nursing to patients in 70 locations serving 17 states.
About J.H. Whitney
J.H. Whitney was established in 1946 by the industrialist and philanthropist, John Hay “Jock” Whitney, J.H. Whitney was one of the first U.S. private equity firms and is often credited with pioneering the development of the private equity industry. Today, J.H. Whitney remains privately owned by its investing professionals and focuses on providing private equity capital to small and middle market companies with strong growth prospects in a number of industries including consumer, healthcare, specialty manufacturing and business services.
Penfund is a leading provider of junior capital to middle market companies throughout North America. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund V. Penfund manages funds sourced from Canadian pension funds, insurance companies, banks, family offices and high-net-worth individuals and has invested more than $3 billion in over 225 companies since its establishment in 1979. Assets and capital under management presently amount to about $1 billion.
Photo courtesy of PSA Healthcare