Realized Investment

Healthy Pet owns and operates veterinary hospitals and is a leading consolidator in the industry. To finance a series of acquisitions, the company utilized numerous seller notes which had begun to impede cash flow and future long-term growth.

During Healthy Pet’s search for solutions, other prospective investors focused on the company’s post-corporate consolidated EBITDA. But Caltius Mezzanine recognized that the company’s true enterprise value was at the veterinary hospital level. Based on this, Caltius Mezzanine could provide more leverage to the company. Caltius Mezzanine committed subordinated debt financing line, with a portion drawn down at closing and the remainder available for future acquisitions.

Healthy Pet was able to retire some of the seller notes and replace them with a single non-amortizing five-year note. Caltius Mezzanine’s investment provided the company with the liquidity it needed to return to acquisition mode. Within twelve months, Healthy Pet successfully purchased four more hospitals. In fact, the company was so effective that Caltius Mezzanine invested an additional amount two years later to further support Healthy Pet’s acquisition strategy.

Connecticut

“The Caltius team impressed us with their due diligence prior to investing. They visited our locations and quickly figured out the drivers of our business. Their effort enabled them to respond intelligently during our acquisition and financial structuring. And, they are genuinely nice people.”

Gino Volpacchio, President & CEO, Healthy Pet Corp.