- Quipt Home Medical Corp. (QIPT) has received a binding commitment letter from CIT Bank, N.A., a division of First-Citizens Bank & Trust Company
- The letter states that CIT will commit to provide 100 per cent of the senior secured credit facilities in the aggregate amount of up to $80,000,000
- The company will use the proceeds of the loans made under the proposed senior credit facilities to finance potential future acquisitions and general working capital purposes
- Quipt Home Medical Corp. provides in-home monitoring and disease management services
- Quipt Home Medical Corp. opened trading at $6.87 per share
Quipt Home Medical Corp. (QIPT) has received a binding commitment letter from CIT Bank, N.A., a division of First-Citizens Bank & Trust Company.
The letter states that CIT will commit to providing 100 per cent of the senior secured credit facilities in the aggregate amount of up to $80,000,000. This facility will consist of a term loan facility in an aggregate principal amount of up to $5,000,000, a delayed draw term loan facility in an aggregate principal amount of up to $55,000,000 and a revolving credit facility in an aggregate principal amount of up to $20,000,000, which are collectively called the proposed senior credit facilities.
The senior credit facilities would be evidenced by an amended and restated credit and guaranty agreement, which will amend and restate the credit agreement dated September 18, 2020, between Quipt and CIT. The company will use the proceeds of the loans made under the proposed senior credit facilities to finance potential future acquisitions and general working capital purposes.
“As always, we will continue to remain extremely disciplined with our capital allocation strategy maintaining a very healthy balance sheet with a conservative leverage structure,” said Greg Crawford, Chairman and CEO of Quipt.
“Furthermore, we believe that the senior credit facilities further validate the strength of our business model which is yielding robust financial and operating results and will provide us the flexibility needed to be very agile as opportunities arise,” he added.
CIT Bank will act as the administrative agent and as the sole lead arranger and sole book runner for the proposed senior credit facilities.
CIT is a division of First Citizens Bank, the largest family-controlled bank in the United States.
Quipt Home Medical Corp. provides in-home monitoring and disease management services, including end-to-end respiratory solutions for patients in the United States healthcare market.
Quipt Home Medical Corp. opened trading at $6.87 per share.
