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CIT Provides $50MM Financing to Distributor of Medical Equipment

April 08, 2014, 05:27 AM
Filed Under: Healthcare

CIT Group announced that CIT Corporate Finance, Healthcare served as Sole Lead Arranger in a $50 million senior secured credit facility for QMES, a distributor of durable medical equipment to patients in nine states. QMES is a portfolio company of Quadrant Management Inc., a private equity firm based in New York City. The facility will be used to refinance legacy debt and provide for ongoing working capital needs. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.

“QMES has an impressive track record of growth having completed 10 acquisitions since 2012 and effectively establishing itself as one of the largest medical equipment home delivery companies on the East Coast,” said William Douglass, Managing Director and Group Head of CIT Corporate Finance, Healthcare. “We were able to leverage our extensive expertise in middle market healthcare finance to deliver a total financing solution that met their needs. We look forward to building this relationship.”

Michael Coiley, Managing Director, CIT Corporate Finance, Healthcare, said “CIT’s deep industry experience in the healthcare industry and comfort structuring transactions for entrepreneurial companies was a great fit for Quadrant’s needs as they looked to simplify their financial picture and further solidify their position in the markets they serve.”

Luke McGee, Chairman and CEO of QMES, said, “QMES derives revenue from an extensive network of referral sources and maintains and grows these relationships by providing high quality services, clinical expertise and differentiated offerings designed to improve patient outcomes on a region-by-region basis. We’ve expanded our presence significantly with a series of acquisitions over the past two years. CIT clearly understood our sector and was the ideal partner to support us as we looked to evolve our financial structure to reflect to the company we’ve become and position ourselves for the future.”

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