Heather Milazzo, refer to disclaimer on restrictions of use at the bottom of the page.
01 September 2020 | 16:19 EDT
The Derm Group tapped Getzler Henrich & Associates as financial and operational advisor to help navigate a COVID-19 pandemic-driven earnings slowdown, according to two sources familiar with the situation.
The New Jersey-based company, which provides cosmetics and medical treatments, is hit by a slowdown in patient traffic to non-essential healthcare services providers, one of the sources said.
Its capital structure solely consists of an approximately USD 50m NXT Capital-led credit facility, one of the sources and a third source said. The facility was issued in 2016 to back an investment by sponsor The Riverside Company. The Derm Group produced roughly USD 7m in LTM EBITDA at the time of that deal, the sources said.
However, its leverage has crept up in recent months as earnings declined, the first source said.
Against such a backdrop, the company also brought in Keen-Summit Capital Partners as a real estate advisor, firm Principal and Managing Director Matthew Bordwin confirmed to Debtwire.
“Keen is assisting the company to restructure their lease obligations as they work to strengthen their go-forward business on core locations,” Bordwin said.
The Derm Group manages 17 dermatology practices in New Jersey, New York, Pennsylvania and Connecticut. It completed a pair of add-on acquisitions in 2017.
Private equity-backed, non-essential healthcare services providers have struggled to manage their levered balance sheets during the pandemic. For example, dental practice business services company Benevis filed for bankruptcy last month. And dental lab operator Dental Services Group handed control to its lenders earlier this year.
The Derm Group and The Riverside Company did not respond to requests for comment. Getzler Henrich and NXT declined to comment.
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