SANTA MONICA, May 25, 2016 – Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC), announced that its Healthcare Finance group acted as left lead arranger, lead bookrunner and administrative agent on $125 million in senior secured credit facilities for Springstone, LLC, which included a $21 million revolver and a $104 million multi-draw term loan. Springstone, a developer and operator of behavioral health hospitals, will be using the proceeds from the facilities to fund working capital and finance future growth.
Founded in 2010, Springstone is a portfolio company of Welsh, Carson, Anderson & Stowe (WCAS), and provides inpatient and outpatient services for people needing treatment for mental illness and/or addiction. The company currently operates 11 behavioral health hospitals in five states, with a number of new facilities under development.
“Wells Fargo’s knowledge and expertise in the healthcare industry will help us to provide services to areas that are currently underserved,” said Robert J. Maha, MD, CEO of Springstone. “We’re pleased to have completed this financing with Wells Fargo and look forward to growing our relationship with them.”
“Springstone is an innovative company, led by a first class management team providing professional and compassionate services and environments for healing.” said Michael Janda, managing director in the Healthcare Finance group at Wells Fargo Capital Finance. “We are pleased to work with WCAS and Springstone management to offer the flexibility and resources to help the company to continue to grow and succeed.”