Oak Street Health Secures $300 Million in Financing from Hercules Capital and Silicon Valley Bank

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Nov 16, 2022, 08:00 ET

SANTA CLARA, Calif., Nov. 16, 2022 /PRNewswire/ -- Silicon Valley Bank, the bank of the world's most innovative companies and investors, and Hercules Capital, Inc. (NYSE: HTGC), today announced that they provided a $300 million credit facility to Oak Street Health (NYSE: OSH), a network of value-based primary care centers for adults on Medicare. The financing is intended to provide Oak Street Health with operational and strategic capital for the next several years.

"This financing agreement is the result of the strong relationships Oak Street Health has built with Hercules Capital and Silicon Valley Bank over the last several years," said Tim Cook, Chief Financial Officer at Oak Street Health. "We look forward to continuing to work with Hercules Capital and Silicon Valley Bank as we invest in our business and advance our mission of rebuilding healthcare as it should be."

Oak Street Health is a tech-enabled, primary care company that is specifically dedicated to meeting the health needs of older adults. The company cares for Medicare-eligible patients with chronic illnesses, particularly those in underserved communities.

"Hercules Capital is pleased to once again partner with Oak Street Health as they continue to grow their national footprint and provide high-quality primary care to older adults across the country," said Michael Dutra, Managing Director at Hercules Capital. "We are impressed with Oak Street Health's dedication to patients and are happy to support their continued growth with this new credit facility."

"Oak Street Health is rebuilding healthcare through its innovative model and approach to providing high-quality services and support for patients," said Tom Hertzberg, Market Manager and Head of Central and Southwest U.S. Life Science and Healthcare Banking for Silicon Valley Bank. "We are excited to meet Oak Street Health's financing needs and provide them with advisory expertise. This is a great example of the comprehensive solutions and advice SVB offers to companies to help them succeed and scale."

About Silicon Valley Bank

Silicon Valley Bank, the bank of the world's most innovative companies and investors, provides commercial banking services, expertise and insights to the technology, life science and healthcare, private equity, venture capital and premium wine industries. Silicon Valley Bank operates in centers of innovation around the world and is one of SVB's core businesses with SVB Capital, SVB Private and SVB Securities. With global commercial banking services, Silicon Valley Bank helps address the unique needs of its dynamic, fast-growing, innovative clients. Learn more at svb.com.

Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (SVB) (Nasdaq: SIVB). SVB Financial Group is the holding company for all business units and groups. © 2022 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, SVB SECURITIES, SVB PRIVATE, SVB CAPITAL and the chevron device are trademarks of SVB Financial Group, used under license. [SIVB-C]

About Oak Street Health

Founded in 2012, Oak Street Health is a network of value-based primary care centers for adults on Medicare. With a mission of rebuilding healthcare as it should be, the Company operates an innovative healthcare model focused on quality of care over volume of services, and assumes the full financial risk of its patients. Oak Street Health currently operates more than 160 centers across 21 states and is the only primary care provider to carry the AARP name. The Company is a winner of Energage's 2022 Top Workplaces USA award, was recognized by Inc. on its inaugural Best-Led Companies of 2021 list and was honored as a recipient of the Joy in Medicine™ Health System Recognition Program by the American Medical Association in 2022 and 2021. To learn more about Oak Street Health's proven approach to care, visit oakstreethealth.com or read its Social Impact Report.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed more than $16 billion to over 600 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact [email protected], or call 650.289.3060.

SOURCE Silicon Valley Bank