AIG Global Investment Group (AIGGIG), through affiliates of its member companies, provided a combined $60 million of mezzanine financing for two of KRG Capital Partners Fund II healthcare services companies. On June 30, 2004, AIGGIG provided $20 million of senior subordinated notes to Chronic Care Solutions, Inc., doing business as CCS Medical ("CCS") to support the acquisition of Matria Healthcare’s Pharmacy and Supplies Division ("PSD"). CCS is a leading provider of medical supplies to patients suffering from chronic conditions, particularly diabetes-related conditions.

Separately on July 30, 2004, AIGGIG provided $40 million in senior subordinated debt and junior subordinated debt with warrants to support KRG Capital Partners’ buyout of HMS Healthcare Inc. This investment partially funded the combination of two regional, non-risk preferred provider organizations ("PPOs") access networks, Sloans Lake Managed Care ("SLMC") and PPOM LLC. HMS Healthcare will provide access for approximately 1.5 million people to a provider network including over 500 hospitals and 60,000 physicians. This transaction combines the experience of two independent market leaders: SLMC, the largest access PPO network in Colorado, and PPOM, the largest access PPO network in Michigan, with operations in Ohio and Indiana.

These financings represent the fourth and fifth transactions, respectively, in which AIGGIG has provided financing support to KRG Capital Partners in its role as lead equity sponsor.

Back to Direct Investments News