DECEMBER 2020 – Audax Private Debt and Adams Street Partners, as Joint Lead Arrangers, provided a unitranche credit facility to support Freeman Spogli’s acquisition of US Med-Equip (“USME” or the “Company”), a value-added distributor and rental provider of movable medical equipment. Varagon Capital Partners and Madison Capital Funding, as joint syndication agents, and Willow Tree Credit Partners also supported the financing. Audax Private Debt also served as Administrative and Collateral Agent.
Houston-headquartered USME partners with hospitals across the United States in the rental, sale, service, and asset management of movable medical equipment including diagnostic and clinical devices ranging from infusion pumps and patient monitors to ventilators, newborn incubators, and more. Founded in 2003, USME is a rapidly growing distributor and provider of movable medical equipment rentals with more than 40 locations across 23 states, serving over 1,600 hospital customers with more than 60,000 units in its equipment fleet.
“USME has established itself as a proven leader in the medical equipment rental market, having shown consistent growth since its founding,” said Rahman Vahabzadeh, Managing Director at Audax Private Debt. “The Company’s critical services are in higher demand than ever, and we are excited to continue working with management and Freeman Spogli to help support their key growth initiatives.”
“USME has demonstrated impressive growth and resiliency through several economic environments since its inception,” said Shahab Rashid, Partner and Co-founder of Adams Street’s Private Credit team. “We are excited to partner with Freeman Spogli and support the company as it enters its next phase of ownership.”
“Our lender syndicate was able to structure a financing package that allows USME to continue its growth trajectory and expand into new geographies and ancillary product lines,” said John Hwang, Partner at Freeman Spogli. “The entire group, led by the Audax Private Debt and Adams Street teams, operated in a creative and collaborative way to support the capital needs of the Company, and we are confident in their ability to scale and support our growth objectives as our partners in this investment.”
Founded in 2003 and headquartered in Houston, Texas, US Med-Equip is a leading value-added distributor and rental and related services provider of mission-critical movable medical equipment used in hospitals. The Company provides equipment rentals across four product categories – respiratory, infusion, monitoring and central supply / NICU. For more information, please visit www.usme.com.
Audax Private Debt has invested over $21 billion across more than 820 established middle market companies in support of over 230 private equity sponsors. Our platform offers a range of financing solutions, including first lien, stretch senior, unitranche, second lien, subordinated debt, and equity co-investments. We provide financing certainty, add-on investment capability, and the experience and collaborative approach to work with portfolio companies. Based in New York, our experienced team of investment professionals has built lasting relationships, establishing Audax Private Debt as a trusted name in the U.S. middle market. For more information, visit the Audax Private Debt website www.audaxprivatedebt.com.
Audax Private Debt is an integral part of Audax Group, a leading alternative investment manager headquartered in Boston with offices in New York and San Francisco. Since its founding in 1999, the firm has raised over $26 billion in capital across its Private Debt and Private Equity businesses.
Adams Street Partners is one of the largest and most established private markets investment management firms in the world. Adams Street was established in 1972, and today manages $42 billion of assets across five strategies – primary and secondary private fund investments, co-investments, private credit investments, and direct growth equity investments. Adams Street employs more than 200 people in Chicago, Beijing, Boston, London, Menlo Park, Munich, New York, Seoul, Singapore, and Tokyo.
Adams Street Partners’ Private Credit investment strategy provides financing solutions to sponsor-backed middle market companies across the capital structure, including first lien loans, revolvers, unitranche facilities, second lien loans, mezzanine debt, and equity. For more information, visit the Adams Street Partners website www.adamsstreetpartners.com.
Audax Private Debt
Partner and Co-founder, Private Credit
Adams Street Partners
Sard Verbinnen & Co.
Julie Rudnick/Julie Casale