Change Capital Provides $2MM to a National Healthcare Staffing Platform

An auxiliary healthcare staffing platform had an asset-based revolving line of credit in place which was approaching renewal. Due to the company’s rapid growth over the past several years, they had accumulated an over-advance balance of approximately $1MM which was causing them to be charged a much higher rate of interest.

The lender offered to lower the rate on the condition that the over-advance balance was significantly reduced prior to the contract renewal date. Change Capital was approached by the lender to reduce their over-advance position and to provide the company with additional growth capital in second lien position.

We were able to structure a flexible multi-tranche funding schedule that enabled the company to reduce the over-advance significantly, allowing them to renew their ABL line with a reduction in their overall cost of capital on a blended basis.

The company was also able to invest the additional capital to rapidly grow its business and ultimately received a large equity investment at a much higher multiple.

About Change Capital:

Change Capital provides creative, flexible, and timely capital solutions to small and medium businesses across the country.