RSTWIII Invests $29.0 million in Home Care Supply, Inc.

Home Care Supply Completes $145,000,000 Refinancing

NEW YORK, May 2, 2001 – Home Care Supply, Inc. (“HCS”), a leading provider of home medical equipment headquartered in Beaumont, Texas, announced today it has successfully completed a $145,000,000 refinancing of the company, including additional mezzanine and equity financing. 

Formed in 1998 as a platform for acquisitions in the highly fragmented home healthcare supply industry, Home Care Supply, Inc. (www.homecaresupply.com) has grown into a diversified health care provider of respiratory, durable medical equipment, infusion, and mobility products.  HCS currently operates 48 locations from New York to Texas with approximately $120 million in annual revenues. Home Care is the largest privately held HME company in the country.  

Todd Christopher, Chairman and CEO of HCS, states, “This round of financing, secured in a very tough market, underscores our company’s strengths and positions us for future growth through acquisitions as well as greenfield startups.”

Harvest Partners, Inc., a New-York-based private equity firm in partnership with HCS management arranged financing for both future acquisitions and growth capital. Investors in HCS included prior lenders and equity investors, as well as Rice, Sangalis, Toole & Wilson and Prudential Capital, both new investors. UBS Warburg was the private placement agent for a portion of the senior and subordinated debt financing.