Springfield’s Babson Capital Management LLC says it put up $24 million in mezzazine debt and equity financing to fund the purchase of a Dallas chain of hospice-care centers — its second such transaction in a month.
Babson said $22 million in mezzanine debt financing and $2 million in equity went toward Kohlberg & Co.’s buyout of SouthernCare Inc. Mezzanine financing typically gives the lender the right to convert to an ownership or equity stake if the debt isn’t repaid on time.
It was unclear precisely how much Kohlberg is paying for SouthernCare. Babson spokesmen did not immediately return phone calls seeking comment. Kohlberg, of Mt Kisco, N.Y., a leading U.S. private-equity firm, could not immediately be reached for comment.
Founded in 1994, SouthernCare provides hospice care for more than 3,000 terminally ill patients daily at 75 centers in 15 states throughout the Midwest and Southeast. It employs about 1,500 caregivers.
In mid-November, Babson put up $16 million in mezzanine finance and $2 million of equity so Compass Investment Partners could acquire Dantom Systems Inc., of Wixom, Mich., which handles accounts-receivable and revenue-cycle management for healthcare providers and others.
