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Use of funds:
Meridian provides flexible financing solutions to proven operators of healthcare service and manufacturing companies.
Meridian's extensive experience and industry expertise enable us to provide flexible financing to meet numerous goals
including:
- Internal growth
- Acquisition financing
- Recapitalization and refinancings
- Turnaround implementation
- Balance Sheet repair
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Financing Structure:
Meridian provides customized loans to fit the specific needs of our clients. Common aspects of these structures include:
- Structure: Revolving line of credit. Term loans may also be considered in certain circumstances.
- Security type: First position in accounts receivable.
- Fees and interest rate: A one-time origination fee will be applied as well as ongoing interest charges and collateral management fees. Depending on the risk and the company's objectives, Meridian may consider a warrant position.
- Term: One to five years.
- Amortization: None - 100% of principal due upon maturity.
- Prepayment Penalty: Typically 3% in year one, 2% in year two and 1% thereafter.
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Financing Guidelines:
Meridian will consider transactions which, in general, have the following characteristics:
- The prospective client must provide healthcare-related services and/or products in the U.S.
- Loans from $500,000 to $4,000,000.
- The company must have been in existence at least six months and have demonstrable accounts receivable collections history.
- Strong and proven management.
- A history of positive EBITDA and cash flow is not required; however, management must be able to substantiate its business proposition as well as demonstrate its ability to successfully achieve long-term profitability in conjunction with Meridian's financing.
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Advantages and Benefits:
- Healthcare Focus - Meridian lends solely to small and middle market healthcare service and manufacturing companies. Our industry specialization and expertise enable us to provide custom-tailored financing structures, fitting the unique needs of each client.
- Healthcare Expertise - Clients benefit from the healthcare experience of Meridian's Principals, who have in excess of 60 years of healthcare investment expertise. We have seen and successfully addressed almost every conceivable hurdle faced by emerging healthcare companies. Collectively, Meridian's Principals have made hundreds of healthcare loans.
- Early-stage Lender - Meridian typically provides loans to companies with fewer than five years of history and financing requirements under $4,000,000. Larger healthcare finance platforms and banks typically will not consider such loans.
- Responsiveness - Loans can often be closed within three to six weeks after the receipt of initial underwriting materials. Meridian's credit decisions are made centrally as part of an integrated underwriting and portfolio management process.
- Commitment and Financial Strength - Meridian was formed in 1997 specifically to provide creative financing options to small and middle market healthcare companies. Meridian continues to serve the needs of this market sector. Meridian has funded dozens of healthcare companies. This commitment is backed by Meridian's strong capital structure and equity backing.
- Financing Benefits - Meridian's capital can be used to meet working capital and expansion needs as well as for acquisitions, restructuring or refinancing. Meridian's receivables-based loans typically make a client's cash flows more predictable.
- Value-added Partner - Meridian's clients benefit not only from the healthcare expertise resident in Meridian but also through Meridian's network of industry-specific consultants, service organizations and management teams.
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