Capitala Exits Debt/Equity Investments in Medical Equipment Manufacturer

Capitala Finance, a provider of capital to lower and traditional middle market companies, fully exited its debt and equity investments in Medical Depot (Drive Medical), a manufacturer and distributor of medical equipment.

On January 3, 2017, the Capitala exited its investment in Drive Medical and received $21.0 million for its equity and senior subordinated debt investments. Capitala was repaid at par $14.7 million for its senior subordinated note. In addition, the company received $6.3 million for its equity investment, netting a realized gain of approximately $5.0 million with a cumulative cash-on-cash return of 4.7x.

“Our investment was a great opportunity to work with an excellent management team that was passionate about their mission, fully knowledgeable of their market space, and was able to effectively execute multiple, complex, international acquisitions in a short time frame,” said Joe Alala, III, chairman and CEO of Capitala. “We are excited to kick off 2017 with such a successful exit and a healthy appetite to continue investing in quality opportunities.”

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