GE Capital, Healthcare Financial Services announced it ended 2011 as one of the most active capital providers to the U.S. healthcare market, financing more than $7 billion to customers in over 200 transactions, and as the leading arranger of loans to U.S. healthcare middle-market companies.
GE Capital's healthcare finance business delivered critical financing to healthcare companies in need of a broad array of products, including cashflow and asset based loans, real estate mortgages and venture loans, despite ongoing uncertainties surrounding the healthcare industry. The business attributes its market leading performance in 2011 to a combination of factors including its deep healthcare domain expertise, GE Capital's capabilities in arranging and syndicating healthcare loans and the strong market acceptance of a unitranche loan product provided through the Senior Secured Loan Program ("SSLP").
The SSLP, jointly managed by Ares Capital Corporation and an affiliate of GE Capital, provides one loan to replace traditional senior and mezzanine debt, allowing for greater speed and simplicity. GE Capital, Healthcare Financial Services closed 5 new transactions through the SSLP during 2011 totaling approximately $680 million.
Looking ahead to 2012, the financing pipeline for the business looks promising. "U.S. healthcare companies continue to face a challenging landscape driven by increased regulatory scrutiny, an evolving healthcare system and uncertain reimbursements," said Darren Alcus, president and CEO of GE Capital, Healthcare Financial Services. "However, given aging demographics, continuing strong demand for access to high quality healthcare and advances in medical treatments, we believe that smart healthcare companies will find opportunities for profitable growth. We're here to help them build their business."
GE Capital, Healthcare Financial Services has demonstrated its commitment to healthcare by lending through industry and economic cycles. Over the past 10 years, the business has provided more than $60 billion to customers in over 40 healthcare sub-sectors including senior housing, hospitals, medical offices, pharmaceuticals, medical devices, and healthcare services, among others. In fact, over 500 companies rely on GE Capital, Healthcare Financial Services' combination of healthcare domain expertise, broad market coverage and the capital strength of GE and GE Capital to support their financing needs.
In 2011, GE Capital Markets was the #1 lead arranger by volume and number of transactions completed for all financings under $500 million in U.S. healthcare leveraged finance, according to Thompson Reuters LPC Loan Connector.