The financing will be broken down into a $250 million senior secured term loan and a $225 million asset-based credit facility. The term loan will go toward funding acquisitions, while the credit facility will help Prime lower its borrowing costs.
The for-profit Prime is in the process of buying several hospitals in New Jersey, including Saint Michael’s Medical Center in Newark, Saint Mary’s Hospital in Passaic and Saint Clare’s Health System, which includes hospitals in Denville, Dover and Boonton.
“This financing will allow Prime Healthcare to continue its nationwide expansion and to further develop its business model of turning around underperforming but essential hospitals in other regions of the country where Prime Healthcare currently does not have a presence,” Prem Reddy, MD, president and CEO of Prime, said in a news release.
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