Fifth Street Finance Corp. (FSC) Wednesday said it entered into a definitive agreement to acquire Healthcare Finance Group, LLC, an asset-based lender to the healthcare industry. Towards acquisition, Fifth Street expects to invest about $110 million, using operating cash and borrowings.
Fifth Street expects the deal to add to its net investment income and believes that HFG's focus in the healthcare industry offers the potential for strong asset quality and attractive yields, even during challenging economic or debt capital market conditions.
HFG is a specialty lender providing asset-based lending and term loan products to the healthcare industry. Since its founding, HFG has financed in excess of $21 billion in receivables, said Fifth Street Finance in a statement. HFG's total outstanding loan portfolio, as of May 6 consisted of 57 loans with a value of approximately $270 million. HFG's senior management team is expected to provide continuing leadership to HFG going forward.
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