Healogics and Marathon Asset Management Announce Closing of $165 Million Preferred Equity Investment

Healogics, LLC (“Healogics” or the “Company”), the largest outsourced operator of wound care centers in hospitals in the U.S., announced today the closing of a $165 million preferred equity investment from Marathon Asset Management (“Marathon”), a leading global credit manager with $22 billion of assets under management.

“We are excited to partner with Marathon and appreciate their confidence in and support for our long-term strategic plan,” said Healogics CFO, Frank R. Williams. “Our enhanced capital structure will allow Healogics to serve more patients in need of advanced wound care.”

“We are thrilled to partner with Healogics through this investment,” said Randy Raisman, Managing Director in Marathon Asset Management’s Capital Solutions Group, who will be joining the Company’s board of directors as an observer. “We believe that Healogics has solid growth prospects going-forward driven by several industry tailwinds, including growth in the diabetic population, growth in the elderly population suffering from chronic conditions who are in need of wound care, and growth in awareness among payors of the effectiveness of comprehensive would care treatments. The business showed its resilience during the COVID downturn and is now well positioned for growth.”

Marathon initiated an investment in Healogics’ first lien term loan through its Capital Solutions platform in the aftermath of the Covid-19 pandemic. Seeing significant potential upside in Healogics’ business going-forward, Marathon opted to exchange and upsize its term loan investment into a preferred equity stake in the Company.

About Healogics, LLC

Headquartered in Jacksonville, Fla., Healogics is the nation’s wound healing expert. Last year over 300,000 patients received advanced wound care through a nationwide network of over 600 Wound Care Centers. The Healogics team is made up of almost 3,000 employees, 4,000 affiliated physicians and a Healogics Specialty Physician practice group of nearly 300. In addition to the company’s network of outpatient Centers, Healogics partners with over 300 skilled nursing facilities to care for patients with chronic wounds, and provides inpatient consults at more than 60 partner hospitals. As the industry leader, Healogics has the largest repository of chronic wound-specific patient data in the country. For additional information, please visit Healogics.com.

About Marathon Asset Management

Marathon Asset Management LP, formed in 1998 by Bruce Richards (Chairman & Chief Executive Officer) and Louis Hanover (Chief Investment Officer), seeks attractive absolute returns through investments in the global credit markets and real estate related markets with a long-term goal of building a world-class asset management platform. Marathon’s core competency is opportunistic investing in the global corporate, emerging market and structured credit markets based on fundamental, bottom-up research across distinct investment funds, managed vehicles, and separate accounts. Marathon’s private credit business includes direct lending, asset based lending, including healthcare and aircraft leasing, ship finance, along with real estate lending. Marathon’s team has significant experience investing in credit dislocations through multiple cycles. Marathon’s team is fully integrated to capitalize on credit opportunities globally. Marathon possesses a unique, broad-based skill set and proprietary platform to research, analyze and act upon complex capital structures and situations. For additional information, please visit www.marathonfund.com.

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