Allied OMS and its Doctor Shareholders Secure $116 Million Credit Facility

Leading Healthcare Commercial Banks Provide Capital to Fuel Growth

Southlake, Texas (May 14, 2024) –  Allied OMS, the first and only doctor-led and governed management services organization (MSO) for top-tier oral and maxillofacial surgery practices, announced today that it has closed on a $116 million credit facility from four leading banks in the healthcare sector.

KeyBanc Capital Markets served as left lead arranger for the syndicate, which includes BankUnited, N.A., Umpqua Bank, and First-Citizens Bank & Trust Company.

The capital commitment is Allied OMS’s first round of outside financing. It will fund the MSO’s next phase of growth, specifically partnering with future OMS practices, building de novos and satellite offices to further support its doctors, and recruiting world-class practitioners into existing practices across the U.S. in keeping with the platform’s high standards of quality and safety and commitment to furthering innovation and advancements in the specialty.

“Access to credit continues to be a challenge in the current market. We created this new facility with our commercial lenders to provide capital for our current and future shareholders at rates significantly lower than what traditional private equity-backed groups have been able to obtain,” said Dan Hosler, Co-Founder and CEO, Allied OMS and Managing Partner, DuneGlass Capital. “We have taught our doctors about the differences in capital structures, what those mean for them as shareholders, and how to deploy the resources to deliver outstanding patient outcomes for decades to come.”

Ryan Stilphen, Managing Director, KeyBanc Capital Markets Syndicated and Leveraged Finance, led the facility raise and noted, “Allied OMS’s doctor-owned structure was especially appealing, given the strong alignment of interests, recession-resilient industry, and engaged, dedicated shareholders on the platform.”

According to Hosler, the funding reflects the platform’s solid track record and delivers on Allied’s founding principles – better alignment of interests, better transparency into the MSO and private equity business models, and better economics for doctors – woven into every facet of the business. “Our success is a direct result of DuneGlass Capital’s Doctor EquityTM model – specifically designed to make doctors more informed shareholders and to align the interests of all stakeholders – patients, doctors and staff, investors, and lenders.”

Court Houseworth, Managing Director, Cain Brothers, a division of KeyBanc Capital Markets, added, “Allied OMS continues to redefine the structure of a traditional PE-backed MSO. Their commitment to ensuring shareholder alignment was a significant factor in the market appetite for this opportunity and makes them a highly desirable partner for future investment.”

Miller Johnson provided legal counsel to Allied OMS, while Harris Williams served as Allied OMS’s financial advisor in this transaction.

Read the press release on ACCESSWIRE here.