CRH Medical entered into an agreement with The Bank of Nova Scotia for a $55 million senior secured revolving syndicated credit facility, an increase from $33 million. The increased facility includes US Bank as a partner to CRH and Scotiabank.

The additional credit facility will be used to fund future acquisitions. The interest for the facility is calculated using a set formula with a base rate plus 2.5% to 3.0%, depending on the company’s total debt to EBITDA ratio. Under the facility, using the current base rate, CRH has an expected total interest cost currently of approximately 3.50% per annum. The facility matures on April 30, 2018 and is self-amortizing with fixed quarterly repayments of approximately 5% of the outstanding balance each quarter.

“CRH has now demonstrated a series of disciplined, accretive acquisitions, which has benefited both our shareholders and our creditors. Our financial strength has allowed us to expand our access to relatively low cost, non-dilutive capital in order to maintain our pace and size of accretive acquisitions. We are pleased to have partnered and grown with Scotiabank and to have also added a new partner in U.S. Bank,” said Richard Bear, CFO.

Vancouver-based CRH Medical focuses on providing physicians with innovative services and products for the treatment of gastrointestinal diseases.