NEW YORK, Feb. 18, 2020 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) announced that its Healthcare Finance unit served as the lead arranger of $93.7 million in combined financing for 19 healthcare facilities in California, Nevada and Washington between New Generation Health LLC (New Gen) and affiliates of Genesis Healthcare Inc. (Genesis).
New Gen, a healthcare consulting firm led by experienced professionals specializing in the operation of skilled nursing facilities in the Western portion of the United States, will provide management and/or consulting services for the 19 healthcare facilities. Affiliates of Genesis will continue to provide certain administrative and back office services, and therapy services to the facilities.
As part of the transaction, CIT financed New Gen's acquisition of seven facilities through a $74.7 million senior secured credit facility. Genesis retained an indirect 50% interest in the facilities. CIT also arranged a $19 million asset-based revolving credit facility to provide New Gen with working capital financing for an additional 12 healthcare facilities located in California, Washington and Nevada. CIT will provide capital market services and a variety of deposit account and cash management services.
"We were impressed by CIT's expertise in arranging these financings," said Aaron Robin, chief executive officer of New Gen. "Given the complexities of healthcare, it was extremely helpful to work with a lender that has the industry knowledge needed to arrange and close the appropriate financing."
"We worked closely with our clients to understand their business objectives and developed a customized financing package to meet their needs," said William Douglass, managing director and group head for CIT's Healthcare Finance unit. "We were glad to lend our expertise and knowledge to help our clients generate this creative financing model."
CIT's Healthcare Finance unit, part of the Commercial Finance division, provides comprehensive financing and banking solutions to middle market healthcare companies across the U.S. By using a client-focused and industry-centric model, the Healthcare Finance team can tailor its products and services to help clients meet their needs for growth capital.
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT's consumer banking segment includes a national direct bank and regional branch network. Discover more at cit.com/about.
SOURCE CIT Group Inc.