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Radiant Research, Inc. is the largest owner/operator of clinical research sites in the United States. Radiant provides phase I-IV clinical drug development services to the biopharmaceutical industry at its national network of 50 wholly-owned clinical research facilities. Headquartered in Bellevue, WA, Radiant employs nearly 1,000 research professionals and has conducted more than 8,000 clinical trials across 18 therapeutic specialties.
Following the acquisition of its largest competitor in March 2003, Radiant experienced integration difficulties which negatively impacted financial performance and constrained the capital available to take advantage of the company's growth opportunities. Perceived as too early stage for many capital providers, the company sought a new financial partner for its next phase of development.
Focusing on Radiant's strong backlog of studies in progress and deep database of patients, Caltius concluded that the company had a stable revenue base with a strong potential for future growth. And, with the successful resolution of outstanding integration issues stemming from its previous acquisition, the company was well-positioned to realize its strategic plan.
In September 2004, Caltius closed a $14.5 million subordinated debt investment and a $1.5 million equity co-investment in Radiant. Caltius' investment was part of a $26 million debt and equity transaction used to refinance existing debt and provide capital to support the expansion of Radiant's rapidly growing early stage clinical trial business. The equity portion of the financing was provided by Caltius Mezzanine and existing investors, including ABS Capital Partners, Oak Investment Partners, Salix Ventures, and Mayfield Associates. In May 2005, Radiant sold its early stage business to Covance, resulting in a complete redemption of Caltius' debt and a partial redeption of Caltius' equity investment. In June 2007, Radiant sold its remaining business to a strategic buyer, resulting in additional equity proceeds to the shareholders.
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