Take-private transaction in challenging financing market
Soleo (formerly know as Allion Healthcare, Inc.) is a national provider of specialty pharmacy and disease management services focused on HIV/AIDS patients as well as specialized biopharmaceutical medications and services to chronically ill patients. The Company sells HIV/AIDS medications, ancillary drugs and nutritional supplies under the trade name MOMSPharmacy. Soleo provides services for the intravenous immunoglobulin, blood clotting factor and other therapies through its Biomed America division. The Company works closely with physicians, nurses, clinics, AIDS Service Organizations, and with government and private payors to improve clinical outcomes and reduce treatment costs.
Faced with a difficult financing environment and uncertain healthcare reimbursement rate risk, a major private equity firm looked to Falcon to provide a mezzanine solution that enabled them to execute a complicated take-private transaction. The acquisition required a firm commitment letter months prior to close to enable the sponsor to sign definitive documentation, start the SEC process and proxy solicitation processes. After working expeditiously to conduct due diligence, Falcon committed to and subsequently funded senior subordinated notes with warrants.