Brentwood, Tennessee-based Promises Behavioral Health recapitalized its balance sheet to set the company up for additional growth.
On Tuesday, the company announced it completed a full recapitalization with New York City-based Assured Healthcare Partners LLC, a health care-focused investment management firm.
Assured Healthcare Partners, the controlling shareholder of Promises Behavioral Health, converted the debt it held in Promises into equity.
This provides Promises Behavioral Health with added operational and financial flexibility by lowering its debt load and increasing its flexibility with its cash for growth opportunities. The release states that the company also fielded additional capital from a strategic partner but doesn’t name the partner.
“Our continued support of Promises enables expanded access to essential mental and behavioral health services in underserved segments of the healthcare market,” Jim Pieri, managing partner with Assured Healthcare Partners, said in a news release. “We will continue to devote substantial resources to opportunities in behavioral health given the meaningful value creation opportunities we can influence as a financial sponsor.”
Launched in 2019 by BlueMountain Capital Management, Promises provides treatment for substance use disorders, sexual addiction, trauma, eating disorders and other mental health conditions. The company currently operates facilities across Texas, Tennessee, Florida, Pennsylvania and Massachusetts. Its website lists nine specific locations. (Assured Healthcare Partners spun out of BlueMountain Capital Management in 2013.)
“This transaction provides Promises with the resources we need to continue executing our strategy of organic, de novo and M&A growth,” Rob Waggener, Promises Behavioral Health CEO, said in the release.
Over the last 18 months, the company has deployed more than $10 million in new facilities
In March, Promises Behavioral Health announced it opened a 72-bed addiction and mental health treatment center in College Station, Texas. The company announced the opening of a new facility in Nashville in June.
The company also opened two new outpatient locations as well as increased transitional sober-living beds in Massachusetts, the release states.
Promises Behavioral Health plans to continue its expansion by adding multiple transitional living facilities in its markets and acquiring high-performing behavioral health organizations. The company is also expanding its potential footprint by adding new payer contracts to its business in existing and new markets.
The company also continues its own internal development with the addition of new executives. Promises hire Lorri Steiner as its CFO and Rick Desai as vice president of managed care, the release states.
Earlier this year, the company also hired Brian Stoesz as new vice president of operations development; Flora Sadri as national medical director of substance use disorder; and Cameron House as CEO of Promises Brazos Valley, the College Station facility.
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