How NAB supported an innovative radiology group’s expansion

The business:

5D Clinics is home to CyberKnife – a unique robotic radiation delivery system – which treats tumours and other lesions anywhere in the body. CyberKnife can deliver a high dose beam of radiation directly to a tumour or lesion with sub-millimetre accuracy, minimising radiation to nearby healthy organs and tissue.

The challenge:

5D Clinics needed flexible funding to support its expansion from Western Australia to the eastern states via a joint venture. They turned to broker Luke Jackson, managing director of Coltbridge Capital, for assistance.

The broker opportunity:

Luke Jackson has been involved with 5D Clinics since its inception. He led the funding arrangement for its first radiation bunker and CyberKnife machine in Claremont, WA.

“The sponsors had strong backgrounds in medical administration, technical (radiation surgery) and property development but were unsure how to approach lenders to assist in the establishment of a new medical technology business,” Luke says.

Customer and Director of 5D Clinics Nick Stanisis says Luke was recommended to him as a financier with the skill set to structure a financial package for cutting edge medical technology.

“Luke took the time to fully understand every aspect of the [5D Clinics] business. The unique nature of our service required more than just a broker, offering expert guidance on structuring arrangements that best suited 5D Clinics.”

“The sponsors trusted us to help structure a flexible funding package that met their operational and strategic goals, ensuring the best banking relationship possible,” Luke adds.

The solution:

Luke reached out to Chelsea Gallash, Senior Health Banking Manager at NAB Health.

“Luke and I were colleagues prior to his staring his own business,” says Chelsea. “We stayed connected over the years and when he was working on this transaction, he reached out to discuss it.”

The deal was run as an open market tender focused on debt financing, with additional considerations including transactional banking capabilities, a seamless transition from the business’s existing providers, and superior service.

“Luke and I had several conversations upfront where I provided guidance on NAB’s parameters to support the transaction. Luke was open to NAB meeting the client once we provided an approved term sheet,” Chelsea explains.

A client meeting followed, enabling Chelsea and her team to engage directly with key decision-makers at 5D Clinics. This helped NAB gain a clearer understanding of the funding structure and the clinic’s priorities, allowing them to meet the client’s needs and timelines effectively.

The result was that Luke successfully facilitated securing financing from NAB for 5D Clinics’ expansion.

Nick credits Luke for his extensive network and ability to advocate for the 5D Clinics business model within the bank’s management and risk division. “NAB showed a strong interest in what 5D Clinics was offering and provided an initial tender that demonstrated their willingness to provide a package that recognised both the social and financial merits of the project,” he says.

“It was crucial for us to have NAB provide an all-encompassing service that assists in making the financial component of cancer treatment easier for patients.”

Chelsea agrees the collaboration has been a positive experience for all parties and shares that 5D Clinics is now exploring extending its relationship with NAB into the charitable arm of its business.

Lessons learned:

For Luke, the success of this transaction underscores the importance of strong relationships and excellent service.

“Coltbridge is built on relationships and excellence in execution,” he says. “We integrate ourselves into our client’s business, spend time to navigate and explore innovative financing solutions and back ourselves in to deliver successful outcomes. Thinking ‘outside the square’, executing on what we say and building mutually beneficial relationships is what brings our clients back to us on multiple engagements.

“Holding a customer relationship and presenting a transaction to the bank is half the job. An important but often overlooked skill is the ability to ensure your customers’ needs are met and that of the financiers/banks too. Help the financier to excel in assisting your client. Help the financier to have a strong and rewarding relationship, too as part of delivering a fantastic outcome. That’s win-win (and a win for us, too).”