$115m Credit Facilities for Evolution1 Inked

August 31, 2011 / Albert Hamon, Mergers and Acquisitions Reporter

GE Capital, Healthcare Financial Services has closed $115 million in senior secured credit facilities for Evolution1 (formerly Evolution Benefits, Inc.), a portfolio company of Genstar Capital, LLC.

$115m Credit Facilities for Evolution1 Inked

The financing was used to recapitalize Genstar’s acquisition of Evolution Benefits and support the company’s acquisition of Lighthouse1, LLC. GE Capital Markets served as sole lead arranger and joint bookrunner, as it did upon providing a $4.5 million credit facility to QSpex Technologies, Inc. on July 2010.

With over $17 billion invested, GE Capital, Healthcare Financial Services has been providing capital and services to the healthcare industry, with investments in more than 40 sub-sectors including senior housing, hospitals, pharmaceuticals, and medical devices.

Last June, GE and Calpine Corp. obtained an $844.5 million credit facility for the construction of a California power plant. The funding included a construction loan for the 619-megawatt Hayward, Calif., plant, which would convert to a 10-year term loan when commercial operations begin in mid-2013.

Evolution1 and its partners serve more than seven million consumers, and is touted as the nation’s largest electronic payment, on-premise and cloud computing healthcare solution that administers reimbursement accounts, including HSAs, HRAs, FSAs, VEBAs, Wellness and Transit Plans.

It meets up to 1,200 plan designs, provides innovative auto-substantiation technologies, simplifies user experience, and automates workflow for partners, employers, and consumers, doing this on one technology platform comprised of Lighthouse1, PayDirect, the Benny Prepaid Benefits Card, Lighthouse1 OneCard and integrated web portals.

“GE Capital’s Healthcare Financial Services business has been a supportive financing resource,” said Patrick Murphy, senior vice president and chief financial officer of Evolution1.

“Having a lender that has deep industry knowledge and experience provides assurance that we have the capital necessary to execute our growth strategy.”

“We are pleased to work in collaboration with Genstar Capital as Evolution1 continues to grow its business,” said Robert McCarrick, senior managing director for GE Capital, Healthcare Financial Services’ corporate finance group.

“Our products, healthcare expertise and financing experience enabled us to provide Evolution1 with the necessary growth capital to help them maintain industry leader status in electronic payment solutions for the employee benefits market.”

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