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. 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 Mezzanine 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 Mezzanine closed a subordinated debt investment and an equity co-investment in Radiant. Caltius’ investment was part of a larger 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.
“Caltius Mezzanine really took the time get to know our management team and understand our business. Many other subordinated debt lenders focus purely on the financials, without a clear picture of the business and an understanding of what makes the management team tick. Caltius is a very supportive investor, actively providing valuable introductions and always available as a sounding board.”
Michael K. Lester. Chairman, President & CEO, Radiant Research