- Quipt Home Medical has closed $110,000,000 in senior secured credit facilities with CIT Bank, N.A., a division of First-Citizens Bank & Trust Company
- The senior secured credit facilities total $110,000,000 and consist of a $5M term loan facility, an $85M delayed draw term loan and a $20M revolving credit facility
- Due to strong demand from CIT and its syndicate of lenders, the facilities were increased from the originally announced $80,000,000
- Quipt Home Medical Corp. provides in-home monitoring and disease management services
- Quipt Home Medical Corp. is up 5.45 per cent on the day, trading at C$6.00 per share at 11 am ET
Quipt Home Medical (QIPT) has closed $110,000,000 in senior secured credit facilities with CIT Bank, N.A., a division of First-Citizens Bank & Trust Company.
The senior secured credit facilities total $110,000,000 (comprised of a term loan facility in an aggregate principal amount of $5,000,000, a delayed draw term loan facility in an aggregate principal amount of $85,000,000 and a revolving credit facility in an aggregate principal amount of $20,000,000).
The company originally announced this transaction on August 15, 2022 when it executed a binding commitment letter with CIT for up to $80,000,000 in senior credit facilities. However, as a result of strong demand from CIT and its syndicate of lenders, the facilities were increased.
The proceeds of any loans made under the facilities will be to finance potential future acquisitions and general working capital purposes.
Greg Crawford, Chairman and CEO of Quipt, commented on the upsized financing.
“The closing of senior credit facilities in the amount of $110 million is an extraordinary milestone for the company, representing an additional $30 million from the initial commitment letter with CIT, we announced in August. The significant demand to participate in Quipt’s future growth led to the increased size of the senior credit facilities, which provide us with substantial balance sheet flexibility. We very much enjoyed working with the team at CIT once again and appreciate the continued support from all of the Company’s lenders as we carry out our strategic organic and inorganic growth plans across the United States. We continue to source opportunities across the United States in attractive markets and believe the ability to access meaningful additional funding leaves us well positioned to capitalize on opportunities as they present themselves. As always, we will continue to remain very disciplined in our capital allocation strategy, maintaining a very healthy balance sheet with a conservative leverage structure.”
Chief Financial Officer, Hardik Mehta added,
“The $110 million of senior credit facilities further validate the ongoing strength of our business model, which continues to yield solid financial and operating results. Our operational resilience has allowed us to maintain strength in our cash flows, margins, and revenue base during a period of high inflation and supply chain limitations. Our diversified respiratory product offering and continued work to drive organizational efficiencies focused on better patient outcomes while we continue to reduce the cost of care has positioned us extremely well as we move towards 2023. Moreover, with significant financial resources and an attractive cost of capital, we are set to execute on our robust growth strategy and enhance long-term shareholder value.”
CIT Bank acted as the administrative agent and as the sole lead arranger and sole book runner for the Senior Credit Facilities.
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. is up 5.45 per cent on the day, trading at C$6.00 per share at 11 am ET.
