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Passport Health Completes $70 Million Leveraged Recapitalization
Contact: Bob Brown, Chief Financial Officer, 1-888-661-56573
FRANKLIN, Tenn. and Cleveland, Ohio, April 13, 2006 – Passport Health Communications, Inc. is pleased to announce the completion of a $70 million leveraged recapitalization. Brentwood Capital Advisors LLC, based in Nashville, acted as exclusive financial advisor to Passport and arranged the private equity and subordinated and senior debt required to fund the transaction. Primus Venture Partners, Inc. led the private equity investment, Allied Capital provided subordinated debt financing and Fifth Third Bank provided senior debt financing. William C. Mulligan and Phillip C. Molner from Primus will join Passport’s Board of Directors.
“This investment validates the value of our business model and the services provided to our customers,” states Jim Lackey, Chief Executive Officer. “In addition, it provides capital to fund our aggressive plan of organic growth and selective acquisitions and allows our original investors and management to achieve some liquidity while retaining significant ownership.”
“Passport is a clear leader in eligibility and other revenue cycle services,” stated Bill Mulligan, Managing Director of Primus. “We are delighted to be associated with such a high quality company and management team.”
Phil Molner, Director at Primus added, “We have been impressed with the strong growth rate, market share and high customer satisfaction achieved by the team at Passport. We look forward to supporting their vision and goal of being a leading consolidator in this exciting revenue cycle management sector of healthcare services.”
About Passport
Passport Health Communications, Inc., headquartered in Franklin, Tenn., is a national healthcare solutions provider. Passport connects its customers – 1,300+ hospitals, 1,600+ physician clinics and outpatient centers with access to payer information to facilitate and improve their revenue cycle process. Passport is committed to providing quality data through innovative technology and information solutions and unsurpassed customer support. Passport has been named as one of Healthcare Informatics Top 100 Healthcare Companies by Revenue, Inc 500’s (ranked 120th) Fastest Growing Private Companies and one of Business Tennessee Magazine’s 20 Best Employers.
For more information on Passport Health Communications and its products and services, please visit www.passporthealth.com.
About Primus
Primus is a Cleveland, Ohio-based private equity firm focused on established companies with exceptional growth potential. Primus has raised a total of $620 million across five private equity funds and has invested in more than 120 companies since its inception. Primus is currently investing Primus Capital Fund V, a $280 million fund. Primus has invested across a broad range of industries with an emphasis on business services, healthcare, education and communications. Primus will consider both control and minority investments, as well as leveraged and non-leveraged transactions.
About Allied Capital
Allied Capital (NSYE: ALD), a leading business development company with total assets more than $4 billion, provides long-term debt and equity capital to middle market companies to support management and sponsor-led buyouts, recapitalizations, acquisitions and growth of companies with EBITDA of at least $5 million. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. Since its IPO in 1960, Allied Capital has invested in thousands of middle market companies. Today the Company's private finance portfolio includes investments in more than 100 companies that generate aggregate revenues exceeding $10 billion and employ more than 85,000 people. For more information, please visit www.alliedcapital.com.
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. Fifth Third has $105.2 billion in assets, operates 19 affiliates with 1,119 full-service banking centers, including 119 Bank Mart® locations open seven days a week inside select grocery stores and 2,024 Jeanie® ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania and Missouri. The financial strength of Fifth Third’s Ohio and Michigan banks continues to be recognized by rating agencies with deposit ratings of AA- and Aa1 from Standard & Poor’s and Moody’s, respectively. Additionally, Fifth Third Bancorp continues to maintain among the highest short-term ratings available at A-1+ and Prime-1 and is recognized by Moody’s with one of the highest senior debt ratings for any U.S. bank holding company of Aa2. Fifth Third operates four main businesses: Retail, Commercial, Investment Advisors and Fifth Third Processing Solutions. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded through the NASDAQ® National Market System under the symbol “FITB.”
About Brentwood Capital Advisors LLC
Brentwood Capital Advisors LLC (BCA), founded in 1999, is a privately held investment bank headquartered in Nashville, Tennessee, providing mergers and acquisition and capital raising advisory services to middle market healthcare and business services companies. Since 2002 BCA has completed 25 financial advisory transactions as exclusive financial advisor with healthcare services transactions representing 19 of its 25 assignments. More information about Brentwood Capital Advisors can be found at www.brentwoodcapital.com
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