Shield Healthcare, Inc.

Client & Engagement Overview

  • Shield Healthcare markets a broad range of disposable medical products and product-related services required for the treatment and care of patients in the home including incontinence, ostomy, nutrition, urology, and other products.
  • Trefethen professionals partnered with management to raise the requisite capital to fund a management buy-out.

Challenges

  • Receivables were from state Medicaid programs and extended well beyond aging limits of most lenders.
  • Consideration included preferred equity with liquidation rights, complex conversion features and mandatory redemption rights.

Outcome

  • Approached a very select group of non-traditional lenders and selected Healthcare Finance Group (“HFG”), as HFG was familiar with state Medicaid payment structures and could provide attractive lending terms and complete due diligence quickly.
  • HFG provided $12.3 million in the buyout and allowed the management team to acquire 100% of the common equity.
  • Advised management on and assisted in raising financing for buyout of controlling interest from Kobayashi Pharmaceuticals Co., Ltd.