Capital Formation

Private Cancer Treatment Company Secures Capital

Challenge:

A specific method of cancer treatment had only been available previously in non-profit/university.  The Company (client) was created as the first for-profit venture of its type. Lenders and investors were hesitant due to the lack of operating history and proven business model.  Company needed ~$350mm in order to build out and open its first facility.

Solution:

A structure was created that allowed for the specific assets, development costs, and necessary investments to be made on a site-specific basis with a management fee and other expenses paid to the operating Company.  The Company was able to secure Letters of Intent with four significant hospital systems throughout the country who would have been willing to co-invest in the build-out of their site-specific location over the subsequent five years.  This structure provided comfort to both lenders and investors who closed on their respective transactions of $70mm in equity and $280mm in debt simultaneously.

Result:

The Company built, opened, and is operating two facilities with two more under construction.  It later recapitalized with follow-on equity and refinanced its debt to spur additional growth.  The two existing facilities have collectively treated over 2,500 adult and pediatric patients who suffer from tumors in the brain, lung, breast, and prostate.

Back to list