WFCF, PennantPark Reduce InfuSystem Facility Interest Rate
InfuSystem Holdings announced that it reduced the interest rate on its $36.5 million credit facility with Wells Fargo Capital Finance and funds managed by PennantPark Investment Advisers. The effective floating rate is reduced by 150 basis points. The new effective interest rate is currently 7.75%.
“This new rate with our lenders represents another significant milestone in InfuSystem’s transformation,” said CEO Eric K. Steen. “In particular, it reflects the ongoing success of our strategic plan and the associated strong operating results achieved in 2013 and again in the first quarter of 2014.”
The company earned $0.08 of net income per fully diluted share in 2013. On May 5, 2014 the company reported $0.03 of net income per fully diluted share for the first quarter of 2014.
InfuSystem CFO Jonathan P. Foster noted that based on the levels of bank debt as of the end of the first quarter of 2014 this reduction is expected to reduce debt costs by $0.4 million per year. “We appreciate the flexibility this credit facility provides, as well as the support of both Wells Fargo and PennantPark.”
Madison Heights, MI-based InfuSystem Holdings is a provider of infusion pumps and related services to hospitals, oncology practices and other alternate site healthcare providers.