Goldman Sachs and Morgan Stanley Bolster Financing for Specialty Healthcare Provider in $650 Million Debt Deal

A privately held specialty healthcare provider in the United States closed a $650 million debt financing round, with Goldman Sachs and Morgan Stanley serving as joint lead arrangers and bookrunners. The deal includes a $500 million senior secured term loan and a $150 million delayed draw facility, designed to support the firm’s expansion into high-growth regional markets and upgrade of clinical technology platforms. The financing carries a fixed interest rate of 8.25% over the life of the five-year term, reflecting current market pricing for non-investment-grade healthcare debt. The borrower’s leverage ratio was capped at 5.2x EBITDA, a level that aligns with industry benchmarks for firms with stable cash flows and diversified service lines. The proceeds will be used to fund organic growth, strategic acquisitions, and the integration of recently acquired outpatient surgical centers. Market participants note that the transaction stands out given the elevated cost of capital across the healthcare sector in late 2025. Despite a broader trend of reduced private credit availability, the participation of two major bulge bracket banks signals strong underwriting confidence in the underlying credit quality of the issuer. The deal also highlights a continued appetite for middle-market healthcare financing, particularly for operators with predictable revenue streams and proprietary care models. The transaction impacts a range of stakeholders, including private equity sponsors that hold equity stakes in the firm, regional healthcare providers facing similar capital constraints, and lenders monitoring credit quality in the healthcare sector. The success of this deal may encourage further refinancing activity in the space over the coming quarters.