When is Bostwick deal done?

Quote






HFG Underwrites $43 Million Financing for Bostwick Laboratories

Tuesday, July 19, 2011
Healthcare Finance Group, LLC (HFG) announced that it has underwritten a $43 million senior secured credit facility for Bostwick Laboratories, Inc.

The $43 million senior secured credit facility is comprised of a $20 million revolving line of credit, a $15 million senior secured term loan A and an $8 million senior secured term loan B.

The purpose of the financing was to refinance certain components of Bostwick's existing capital structure, including a revolving line of credit, term loans and an interest rate swap.

Gregory Geisz, Bostwick's VP of Finance, commented, "The continued growth of our company requires a lender that understands our current and future needs for capital, the healthcare regulatory environment and the surrounding issues that accompany the growth we expect. It was great to work with a finance company that truly understands the healthcare industry and looks at our long term overall prospects."

Regarding the transaction, HFG's SVP Steven Goldsmith said, "This is a growth-oriented company that is well-positioned for a much anticipated market consolidation and we are excited about our participation in their expansion. Our senior debt facility will assist with their growth and provide additional resources to support their objectives."
 












Anonymous said:
HFG Underwrites $43 Million Financing for Bostwick Laboratories

Tuesday, July 19, 2011
Healthcare Finance Group, LLC (HFG) announced that it has underwritten a $43 million senior secured credit facility for Bostwick Laboratories, Inc.

The $43 million senior secured credit facility is comprised of a $20 million revolving line of credit, a $15 million senior secured term loan A and an $8 million senior secured term loan B.

The purpose of the financing was to refinance certain components of Bostwick's existing capital structure, including a revolving line of credit, term loans and an interest rate swap.

Gregory Geisz, Bostwick's VP of Finance, commented, "The continued growth of our company requires a lender that understands our current and future needs for capital, the healthcare regulatory environment and the surrounding issues that accompany the growth we expect. It was great to work with a finance company that truly understands the healthcare industry and looks at our long term overall prospects."

Regarding the transaction, HFG's SVP Steven Goldsmith said, "This is a growth-oriented company that is well-positioned for a much anticipated market consolidation and we are excited about our participation in their expansion. Our senior debt facility will assist with their growth and provide additional resources to support their objectives."
Click to expand...

Continued growth?! What growth?

Successful companies don't need to borrow money. Which will need to be paid back.
 












Anonymous said:
Bostwick finally admits(indirectly) to not doing as well as they say, especially if they need a loan to cover financial losses.
Click to expand...

Most of the loan is to pay off other creditors that have called a demand for their loans. This is merely to stay slightly above water to satisify other creditors that this current loan won't cover. BL is toast.
 






Anonymous said:
HFG Underwrites $43 Million Financing for Bostwick Laboratories

Tuesday, July 19, 2011
Healthcare Finance Group, LLC (HFG) announced that it has underwritten a $43 million senior secured credit facility for Bostwick Laboratories, Inc.

The $43 million senior secured credit facility is comprised of a $20 million revolving line of credit, a $15 million senior secured term loan A and an $8 million senior secured term loan B.

The purpose of the financing was to refinance certain components of Bostwick's existing capital structure, including a revolving line of credit, term loans and an interest rate swap.

Gregory Geisz, Bostwick's VP of Finance, commented, "The continued growth of our company requires a lender that understands our current and future needs for capital, the healthcare regulatory environment and the surrounding issues that accompany the growth we expect. It was great to work with a finance company that truly understands the healthcare industry and looks at our long term overall prospects."

Regarding the transaction, HFG's SVP Steven Goldsmith said, "This is a growth-oriented company that is well-positioned for a much anticipated market consolidation and we are excited about our participation in their expansion. Our senior debt facility will assist with their growth and provide additional resources to support their objectives."
Click to expand...

Borrowing from Peter to pay Paul. Yet another dumb move and incompetent business descision. "Anticipated market consolidation" is the key phrase here. BL as we once knew it is OVER!
 






Anonymous said:
Borrowing from Peter to pay Paul. Yet another dumb move and incompetent business descision. "Anticipated market consolidation" is the key phrase here. BL as we once knew it is OVER!
Click to expand...

Apparently, Healthcare Financing Group (HFG) thought that this was a great lending decision-- otherwise, this wouldn't have happened. It appears to be an independent testament to the future growth and success of Bostwick Laboratories.
 


















Or they are excited about defaulting of payments, then taking over a company or payments made and interest collected. Either would be a win-win for them. Not all companies borrow money. Some do, what's the big deal that the $43 mil is going to allow to happen? Pay rent? Pay taxes? Pay suppliers? Pay DOJ fines if that happens?
 






All good companies borrow money--it's called working capital. You are foolish to use all your corporate or individual money to float a company. The only way to grow or expand is to having working capital.
 






Anonymous said:
All good companies borrow money--it's called working capital. You are foolish to use all your corporate or individual money to float a company. The only way to grow or expand is to having working capital.
Click to expand...

We grew. We shrank. So... we're growing again? Will more people be hired to replace the ones let go?
 












Anonymous said:
All good companies borrow money--it's called working capital. You are foolish to use all your corporate or individual money to float a company. The only way to grow or expand is to having working capital.
Click to expand...

Of course! Why didn't I think of that? Never spend your own money! Spend someone else's! You greedy piece of shit. Fuck you.
 






Anonymous said:
Of course! Why didn't I think of that? Never spend your own money! Spend someone else's! You greedy piece of shit. Fuck you.
Click to expand...

Rather you like it or not, its the way the business world works. Guaranteed that most of the large labs and competitors out there have debt in some form or fashion. Its an exception, when companies are debt free or mostly in cash. Thats why the companies that are rich in cash make a big deal out of it. Bostwick did make some bad decisions, but there are very few people who would give him 43 million dollars if they didnt feel they were investing in sound financials and the possibility of strong growth. Would you?
 






Anonymous said:
Oh my god, no they aren't! They get a loan when they start maybe, but after that...no!
Click to expand...

Just in case you doubt "As many households and small businesses are being turned away by bank loan officers, large corporations are borrowing vast sums of money for next to nothing — simply because they can.

Companies like Microsoft are raising billions of dollars by issuing bonds at ultra-low interest rates, but few of them are actually spending the money on new factories, equipment or jobs. Instead, they are stockpiling the cash until the economy improves."

http://seekingalpha.com/article/228428-microsoft-s-strategy-borrow-cheap-money-raise-dividend

Even Microsoft borrows money.
 






Anonymous said:
Rather you like it or not, its the way the business world works. Guaranteed that most of the large labs and competitors out there have debt in some form or fashion. Its an exception, when companies are debt free or mostly in cash. Thats why the companies that are rich in cash make a big deal out of it. Bostwick did make some bad decisions, but there are very few people who would give him 43 million dollars if they didnt feel they were investing in sound financials and the possibility of strong growth. Would you?
Click to expand...

You keeping mentioning growth, but you have no other option with all of the shrinkage in the past 2 years. Do you plan on sending all of that money to New York and Florida, the same way you sent specimens? I'll believe in growth when I don't see anymore temps and most of the previous employees are brought back full time.
 






Anonymous said:
Just in case you doubt "As many households and small businesses are being turned away by bank loan officers, large corporations are borrowing vast sums of money for next to nothing — simply because they can.

Companies like Microsoft are raising billions of dollars by issuing bonds at ultra-low interest rates, but few of them are actually spending the money on new factories, equipment or jobs. Instead, they are stockpiling the cash until the economy improves."

http://seekingalpha.com/article/228428-microsoft-s-strategy-borrow-cheap-money-raise-dividend

Even Microsoft borrows money.
Click to expand...


Yes, but can you imagine the interest rates that Bostwick has to pay vs. Microsoft.
Microsoft is a low risk cash cow, while Bostwick is a VERY HIGH Business Risk at best.
 












Top Bottom
Back
Quote