Key Takeaways
- • Akin Gump advised Crestline Direct Finance on a $50 million senior secured credit facility for Kreg Therapeutics and Kreg Medical, a Milton Street Capital portfolio company, consisting of a $45 million term loan and $5 million revolving credit facility.
- • Proceeds from the financing will be deployed for debt refinancing and growth capital allocation, positioning the healthcare-focused portfolio company for operational expansion.
- • The transaction underscores continued activity in the middle-market private credit space, where sponsors like Milton Street Capital are securing financing to optimize capital structures and fund growth initiatives.
- • Akin's finance practice, led by partner Chad Nichols, executed the engagement, reflecting law firm capabilities in structuring senior secured facilities for portfolio companies within the alternative investment ecosystem.
Summary
Akin Gump Strauss Hauer & Feld LLP has advised Crestline Direct Finance, L.P. in connection with a $50 million senior secured credit facility extended to Kreg Therapeutics LLC and Kreg Medical Inc., portfolio assets of Milton Street Capital, LLC. The financing package comprises a $45 million term loan facility alongside a $5 million revolving credit facility, structured to address near-term capital needs and support medium-term growth objectives.
According to the transaction announcement, proceeds from the facilities will be directed toward refinancing existing debt obligations and funding growth capital deployment. This capital structure reflects a common middle-market private credit strategy in which sponsors optimize leverage positioning while maintaining liquidity for operational initiatives and potential acquisitions.
Milton Street Capital's portfolio company in the therapeutic and medical device sectors accessed the financing through Crestline Direct Finance, a participant in the direct lending market serving mid-market borrowers. The deal demonstrates ongoing investor appetite for senior secured credit facilities in healthcare-adjacent subsectors, where established cash flows and recurring revenue models support debt service coverage ratios acceptable to institutional lenders.
The Akin engagement was led by finance partner Chad Nichols and supported by finance counsel Gerry Griffith II and associates Mickayla Carey and Katherine Wisniewski. The transaction exemplifies the active middle-market lending environment and the continuing demand for legal advisory services in structuring senior secured facilities for portfolio companies managed by established alternative investment sponsors.
According to the transaction announcement, proceeds from the facilities will be directed toward refinancing existing debt obligations and funding growth capital deployment. This capital structure reflects a common middle-market private credit strategy in which sponsors optimize leverage positioning while maintaining liquidity for operational initiatives and potential acquisitions.
Milton Street Capital's portfolio company in the therapeutic and medical device sectors accessed the financing through Crestline Direct Finance, a participant in the direct lending market serving mid-market borrowers. The deal demonstrates ongoing investor appetite for senior secured credit facilities in healthcare-adjacent subsectors, where established cash flows and recurring revenue models support debt service coverage ratios acceptable to institutional lenders.
The Akin engagement was led by finance partner Chad Nichols and supported by finance counsel Gerry Griffith II and associates Mickayla Carey and Katherine Wisniewski. The transaction exemplifies the active middle-market lending environment and the continuing demand for legal advisory services in structuring senior secured facilities for portfolio companies managed by established alternative investment sponsors.
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