Harden Healthcare provides home healthcare, hospice, assisted living and skilled nursing services. Along with its subsidiaries, Harden served nearly 40,000 seniors across the United States in 2010. In late 2009, Harden found that the significant debt it had incurred to fund a previous acquisition was inhibiting its ability to grow. KKR stepped in as a partner to recapitalize the company with $235 million of new funding. KKR Asset Management provided approximately $140 million of this financing, while KKR Capital Markets arranged the placement and syndication of the balance, including a $35 million revolving credit line.
Shortly after the transaction closed in March of 2010, Harden acquired Voyager Hospice Care, expanding its presence in the hospice market and extending its geographic reach to four new states. To support this transaction, KKR invested an additional $50 million and KKR Capital Markets raised an additional $40 million of senior secured debt.
With KKR’s investment, Harden not only overcame the immediate financial stress placed upon it by an inflexible capital structure but was able to grow and expand its operations.