Beedie Capital Commits to Nightingale Term Loan
Nightingale Informatix announced it has received a commitment letter from Beedie Capital Partners for a $3.5 million investment in the form of a secured term loan.
The term loan, which is expected to close in September 2014, will bear interest at a rate of 12% with monthly interest payments being due on the last day of each month and will mature in December 2016. In connection with the term loan, the lender will receive 6.25 million warrants to purchase Nightingale common shares with an exercise price of $0.16 per share. The warrants will expire on December 31, 2016 if not exercised prior to that time.
The term loan shall be subordinate to the company’s existing senior loan facilities and will contain customary covenants, including specific financial and change of control covenants. The company will pay a commitment fee equal to 2% at the time of closing.
Proceeds from the term loan will be used to for general working capital associated with the launch of the company’s next generation product Nexia, to redeem the outstanding Series B Convertible Debentures in the principal amount of $410,000 and to retire the $1.5 million bridge financing advanced earlier this month.
Markham, ON-based Nightingale delivers cloud-based EHR and practice management solutions to healthcare organizations across the U.S. and Canada.