First Citizens Bank announced that its Healthcare Finance division has closed a $125 million senior credit facility for New Day Healthcare, a market-leading provider of home-based services.
The funding will refinance New Day’s existing debt, facilitate four acquisitions under letters of intent, and support future acquisition pipelines. First Citizens Bank acted as the lead arranger and administrative agent for the transaction.
Founded in 2020, New Day Healthcare is a diversified provider of post-acute care services, offering a wide range of home health, hospice, and personal care solutions. New Day Healthcare serves approximately 11,000 patients daily, with a strong emphasis on delivering high-quality, personalized care. New Day Healthcare is majority owned by Kaltroco, a private equity firm based in San Francisco.
“This financing supports New Day’s growth strategy as we expand our offerings to better serve communities across the U.S.,” said G. Scott Herman, CEO of New Day Healthcare. “This acquisition of four facilities in key regions enhances our strong portfolio and advances our mission of delivering comprehensive, patient-centered care in various post-acute settings.”
Currently, New Day’s continuum-based footprint spans 30 locations across Texas, Missouri, Kansas, and Illinois. Touching nearly 120,000 patients annually, New Day employs approximately 7,800 team members in home health, hospice, pediatrics, clinical decision support, and personal care.
"We are pleased to support New Day Healthcare as they continue to expand and enhance post-acute care services," said William Douglass, group head of First Citizens Bank Healthcare Finance. "New Day's commitment to quality care aligns with our focus on helping healthcare providers grow and meet evolving patient needs."
"Our team has built a strong relationship with New Day and Kaltroco, and we are proud to assist them in advancing their business goals," added William Duke, a managing director for Healthcare Finance. "This financing underscores our dedication to providing tailored financial solutions that support growth and sustainability in the healthcare sector."
First Citizens Healthcare Finance provides comprehensive financing and banking solutions to middle market healthcare companies across the U.S. Using a client-focused and industry-centric model, Healthcare Finance can tailor its products and services to help clients meet their needs for growth capital.