Polaris Hospital Company
“OUR IMPRESSION AND EXPERIENCE IN WORKING WITH CAPX IS VERY POSITIVE. CAPX KEEPS ITS WORD, IS RESPONSIVE AND SOLVES PROBLEMS. CAPX WAS QUICK TO LEARN OUR NEEDS AND PAID CLOSE ATTENTION WHILE WORKING QUICKLY TO CLOSE OUR FINANCING. WE HOPE WE CAN WORK ON FUTURE PROJECTS TOGETHER.”
Kevin Lee, CEO
Polaris Hospital Company’s (“Polaris”) private equity sponsor approached CapX to provide equipment financing for a new specialty hospital to be opened in the Nashville, Tennessee area. Polaris Hospital provides inpatient psychiatry, physical medicine/rehabilitation and acute care services as a complement to major medical centers and as a preferred community provider. Polaris and their private equity sponsor continues to search for underserved communities where they can either acquire or build similar specialty hospitals to fulfill these specialized healthcare services.
THE CAPX SOLUTION
Polaris had already demonstrated their business model with the first Texas-based hospital. The Tennessee location was the second business unit and extension of the strategy. CapX was able to recognize the prior operating success of the management team and with the new resources of their private equity sponsor, focus on the secured mezzanine credit theme of the capital need. By focusing on mission critical equipment assets, CapX was able to fund new assets necessary for growth and allow the private equity sponsor to preserve its equity for future growth.
CapX provided a $2,400,000 equipment lease facility to help Polaris acquire new equipment to open its second hospital. Polaris secured real estate financing from a local REIT to provide turnkey construction and long-term lease capital for the hospital. The REIT was not interested in financing real property and left the private equity sponsor to either provide more equity for the equipment or procure equipment financing. CapX worked well with both Polaris and the REIT to craft an equipment financing that worked for all parties involved.
“The strong market need and experience of Polaris’ management were key investment drivers for CapX. Those positive attributes coupled with the hands-on financial support of their sponsor compelled us to provide the necessary growth capital to open this important regional specialty hospital. We welcome Polaris’ next opportunity.” -Jeffry Pfeffer, Managing Partner of CapX Partners