McLean, Va.-based Capital One established a new program to originate unitranche loans to middle-market healthcare companies.
Here are five things to know:
1. Capital One is partnering with New York's HPS Investment Partners as the strategic co-investor in the new program.
2. Through Unitranche Loan Transaction, the program will help borrowers to obtain first lien unitranche loans without a rating agency or syndication process.
3. The unitranche loan blends senior and junior debt pricing and terms into single first lien debt facility rather than creating two classes of debt and coordinating among multiple lenders.
4. Borrowers typically benefit from the single, blended interest rate.
5. Capital One Healthcare has more than $11 billion in total outstanding balances and has customers across the healthcare sector including healthcare services, medical devices, pharmaceuticals, health IT, medical offices and senior housing.