Maranon Capital, L.P. has led a $19.5m mezzanine debt investment to support the recapitalization of Brentwood, TN-based PathGroup Inc. and its subsidiaries in a transaction initiated by Primus Capital Funds.
In addition, Maranon provided $10m of revolving credit and term debt as a participant in a senior credit facility.
PathGroup and its subsidiaries provide a wide range of diagnostic laboratory services including anatomic, esoteric and clinical testing as well as administrative services.
Its clients include over 1,500 hospitals, multi-specialty clinics, surgery centers, physician offices and other clinical reference laboratories located throughout the Southeast and Midwest U.S. as well as California.
Commenting on the financing, Greg Long, a Managing Director at Maranon Capital, said: “We are pleased to be working with Primus and the management team at PathGroup. This transaction illustrates the benefits of using one underwriting team for both the mezzanine and senior debt”.