Asset-based lending proves to be healthy fit for the healthcare industry
SANTA MONICA, September 18, 2014 – Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC), announced that their Healthcare Finance portfolio surpassed $1 billion with the recent $100 million credit facility for Apria Healthcare Group, Inc., a portfolio company of The Blackstone Group. Apria is one of the nation’s leading providers of home respiratory services and certain home medical equipment.
Wells Fargo has a deep history in the healthcare industry, stemming from the 1860’s when the bank handled payments for medicines by physicians and patients to the early 1900’s when Wells Fargo opened up its own emergency hospital in New York City. As the healthcare industry continues to evolve, asset-based lending has become a viable and flexible financing solution that can adapt to the ever changing industry.
“Wells Fargo Capital Finance provided us with a creative and flexible financing package that helps leverage our existing asset base for future growth,” said Debra Morris, CFO of Apria Healthcare Group. “Our sector of the healthcare industry continues to experience significant change. It is important for us to have a lender that understands these dynamics and we are pleased with Wells Fargo’s healthcare expertise.”
Apria is a national provider of oxygen therapy, sleep apnea services and advanced wound therapies. With more than 400 locations throughout the US and more than 1.2 million patients served each year, Apria is a leader in the homecare industry.
In recent months, Wells Fargo Capital Finance’s Healthcare Finance team has provided financing to healthcare companies in various sectors such as long-term care, acute care, hospice and imaging. These include: Ensign, Kindred, Nipro Diagnostics, Inc., Lantheus Medical Imaging, Inc., Consulate Health Care, and Bristol Hospice, LLC.
“Our team has remained consistent, flexible and creative in our approach to providing credit to healthcare companies. Our clients expect this approach. It’s incumbent upon us to remain educated and knowledgeable about each healthcare sector,” said Tracy Maziek, senior managing director and head of Healthcare Finance at Wells Fargo Capital Finance. “We were impressed by Apria’s strategic focus and strong management team. We look forward to working with them as their business continues to grow.”