InfuSystem Holdings secured a $45 million facility with JPMorgan Chase Bank, and has retired its previous $36.5 million facility with its prior lender group.

Effective March 23, 2015, the company entered into the new five-year senior secured credit agreement comprised of a $10 million asset-based revolver, a $27 million senior term A Loan and an $8 million senior term B Loan.

The facility allows the election of a floating interest rate (currently at 3.00%), or fixed LIBOR rates (currently at 2.68%), substantially below the cost of the prior credit facility. At closing the Company had $10.0 million available on the revolver with zero drawn. Only the senior term A loan was funded at closing in the amount of $27.0 million. Term B loan can be drawn under certain conditions within the next 364 days. No funds were drawn at closing.

“The operational and financial progress achieved in the past 10 profitable quarters set the stage for the completion of this new credit facility and the more favorable terms it provides,” said Eric K. Steen, CEO of InfuSystem. “This new facility accomplishes the important strategic goal of significantly reducing our cost of capital, while providing enhanced financial flexibility as we continue to execute on our business plan. We are now better positioned to execute on our growth initiatives, manage our business in a more cost-efficient manner, and seriously consider strategic opportunities that can add scale to our business when they present themselves. This is an important event as we continue to improve the competitive position of InfuSystem within the industry.”

Jonathan P. Foster, CFO of InfuSystem, noted, “We are extremely pleased with the terms of the new credit facility, as well as teaming with JPMorgan Chase as our new banking partner. The new credit facility strengthens the InfuSystem balance sheet and reduces our current interest rate to 3.00% from the previous interest rate of 7.75%. At our current debt levels, the more favorable terms of this facility can result in cash interest expense savings of more than $1.0 million annually.”

Madison Heights, MI-headquartered InfuSystem Holdings is a provider of infusion pumps and related services to hospitals, oncology practices and other alternate site healthcare providers.