A healthy workforce is a tremendous asset to an employer. Healthy employees are generally more productive, and they reduce employer-sponsored health care costs. Interactive Health Solutions Inc. (IHS) is a company that designs and administers employee wellness programs focused on helping participants improve health outcomes. IHS programs—which include biometric screening, health coaching, and on-site blood drawing and accompanying analytics—have a demonstrated ability to save employers and insurance companies thousands of dollars in worker’s compensation claims, short-term disability claims, and general healthcare costs.
CI Capital Partners (CI) acquired Interactive Health Solutions, Inc. in October 2011. At the time, the company was well positioned in light of the growing urgency for employers to curb the growth rate of employee healthcare costs. IHS boasted high customer retention rates and had produced revenue and customer growth in each year since 2006, growing EBITDA and expanding EBITDA margin throughout the financial crisis.
PennantPark structured a senior secured credit facility, including a revolving credit facility and a term loan, priced at L + 950 bps with a 2% LIBOR floor. PennantPark provided $19 million of the first lien term loan as well as equity.
PennantPark Key Advantages: