Capital One/GE capital Tops List of Lead Arrangers of Leveraged Loans to Healthcare

Prospect in IB - Ind

Hello Monkeys,

I found this while doing research on the company. No one really talks about their leverage finance group that is technically housed under their commercial bank. Who would be some of their direct competitors in leverage loans up to one billion?

Anyone have any insight on what its like working there? I know there healthcare lev fin and real estate were purchased from GE Capital.

Comments (9)

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  • Intern in IB - Gen
Dec 22, 2019

I interned at GEHC and the vast majority of their leveraged lending is for equipment and structuring leases for hospitals. The business is not what it used to be. GE Healthcare Equipment Finance which was part of Capital is now rolled into the healthcare business' P&L. They do finance like 7x EBITDA+ to hospitals but the real money is from when hospitals decide to extend leases on equipment. They finance both GE's products and competitors however they syndicate the loans to institutional investors like TIAA and Keybanc

    • 2
  • Prospect in IB - Ind
Dec 22, 2019

So this is in regards to GE not Capital One?

  • Intern in IB - Gen
Dec 22, 2019

Well, yes that's what GEHC is haha.

  • Associate 2 in CorpDev
Dec 30, 2019

7x ebidta ? I'm assuming tenor is 5 years - how much of the loan is amortised and how much bullet is left at the end of 5 years?

Dec 26, 2019

Bump

Dec 30, 2019

Not an answer but wanted to follow up to your question. Thought GE Cap sold their LevFin/sponsor finance group to CPPIB and is now known as Antares? I know Antares does not do real estate and recently started doing HC so maybe the LevFin bus was broken down into pieces and sold separately? Can anyone confirm this?

Array

Dec 30, 2019

My understanding is that they sold GE Healthcare to Capital One for 8 billion dollars which I believe includes real estate lending in the healthcare space.

Jan 1, 2020

Dig some digging - the parts where they sold to CPPIB for $12B was their sponsor finance/LevFin business, so not HC financing but I do believe Antares did not lend to HC companies/LBOs. Since CPPIB took over, they started entering the HC space.

Array

Jan 2, 2020
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