Livingstone advised The Corridor Group on successful financing

  • mrt. 2020
  • Healthcare
  • Debt Advisory
  • US

Livingstone is pleased to announce the successful financing for The Corridor Group Holdings (“Corridor”), a portfolio company of HealthEdge Investment Partners (“HealthEdge”). Brightwood Loan Services (“Brightwood”) provided the financing.

Corridor is the nation’s leading tech-enabled provider of revenue cycle management and documentation compliance services to home health and hospice providers. Founded in 1989 by healthcare practitioners, the leadership team has transformed the business from a consulting organization into a nationally renowned market leader providing expertise, innovative solutions, and education that enable its clients to remain operationally excellent in an increasingly complex regulatory compliance environment.

Livingstone’s breadth and depth of knowledge in the healthcare sector across multiple disciplines were invaluable in our process. This expertise allowed us to survey multiple strategic alternatives, resulting in our great new relationship with Brightwood,” commented Corridor CEO Des Varady.

As an active investor in the lower middle market, we felt we had a good handle on the debt markets, but Livingstone provided access to both the M&A and debt markets, giving us deeper information on alternatives in real-time and enabling us to make the right business decision for our shareholders,” added HealthEdge partner Scott Heberlein.

An operationally-oriented private equity fund, HealthEdge invests in U.S.-based lower middle-market healthcare businesses. The firm boasts a track record of deploying business development and operating expertise to guide companies towards improvement within the specialty medical products and devices, provider services, third party and outsourced business services, pharma supply chain, specialty distribution, and healthcare information technology markets.

Jim Moskal, Co-head of Livingstone’s healthcare practice commented, “This is the third transaction we have closed with HealthEdge, including the sale of Infinity HomeCare to Amedisys and the sale of Dispensing Solutions, Inc. to PSS World Medical. We are pleased this dividend allows them to take meaningful chips off the table while still retaining control of the business and continuing their growth trajectory.

Tom Lesch, Partner at Livingstone added, “These are the types of deals our firm was built for. We were able to quickly run a thorough debt process, which provided Corridor and HealthEdge optionality. In this market, speed and certainty mean everything, and our process provided both.

Corridor represents another successful debt raise for Livingstone’s growing list of private equity sponsors, including L Catterton, Huron Capital, and Sun Capital. This transaction is the 28th global healthcare transaction completed since 2015.

Law firms Shumaker Loop & Kendrick LLP represented Corridor, while Hughes Hubbard & Reed LLP represented Brightwood. Crowe LLP provided transaction advisory accounting work for Corridor.

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Key Transaction Team

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