Caltius Mezzanine Provides $20.0 Million to HealthPlan Holdings
August 15, 2011
Caltius Mezzanine is pleased to announce the recent closing of a $20.0 million financing package to support HealthPlan Holdings’ (“HealthPlan”) acquisition of Zenith Administrators (“Zenith”). Headquartered in Tampa, FL, HealthPlan is a company of Water Street Healthcare Partners (“Water Street”) and a leading provider of outsourced solutions to insurers in the individual, union trust and voluntary benefits markets. HealthPlan is merging Zenith with its subsidiary, American Benefit Plan Administrators. The combination creates a leading national third-party administrator of health care, retirement and other benefits to Taft-Hartley trust funds, and state and municipal plans.
Caltius’ $20.0 million financing package consisted of $17.0 million of subordinated notes and $3.0 million of preferred and common equity.
“Caltius provided Water Street with a creative financing solution that enabled speed and surety of close in a competitive transaction environment,” noted Max Mishkin, a Vice President of Water Street. “This is our first transaction with Caltius and we look forward to working with its team to support HealthPlan’s management team in executing its exciting growth initiatives.”
“We are impressed with HealthPlan’s management team, value proposition, and recurring revenue characteristics,” stated Alisa Frederick, Managing Director of Caltius Mezzanine. “This transaction enables HealthPlan to offer the industry’s most comprehensive administration solutions that can be customized to meet the unique requirements of Taft-Hartley trust funds. It also provides HealthPlan with an excellent platform to continue building scale in this steadily growing market.”
Based in Los Angeles, Caltius Mezzanine provides innovative capital solutions in amounts of $10.0 to $75.0 million to middle market companies throughout North America. Since its founding in 1997, Caltius Mezzanine has invested over $700 million in a broad range of industries to support acquisitions, recapitalizations, buyouts, and organic growth. Caltius Mezzanine is currently investing out of its fourth fund, Caltius Partners IV, LP, a $500 million fund that closed in May 2008. For more information or to refer an investment opportunity, please call us at (310) 996-9585.