Greenbrook TMS, a provider of mental health therapy services, entered into the 19th amendment to its credit facility with affiliates of Madryn Asset Management. As part of the amendment, Greenbrook secured an additional $2,548,223.35 in senior secured term loans from Madryn under the credit facility. After giving effect to the new loan, Greenbrook has an aggregate amount of approximately $70 million outstanding under the credit facility.
The amendment also provides Madryn with the option to convert up to approximately $231,656 of the outstanding principal amount of the new loan into common shares of Greenbrook at a conversion price per share equal to $1.90, subject to customary anti-dilution adjustments. This conversion feature corresponds to the conversion provisions for the credit facility previously issued under Greenbrook’s credit facility, which provide Madryn with the option to convert a portion of the outstanding principal amount of the credit facility into common shares at the conversion price. After giving effect to the issuance of the conversion instrument, Madryn has the option to convert up to an aggregate of approximately $6.3 million of the outstanding principal amount of the loans into common shares at the conversion price.
The amendment further defers the Sept. 30 interest payment due date and extends the period during which Greenbrook’s minimum liquidity covenant is reduced from $3 million to $300,000 to Dec. 8.
Greenbrook expects to use proceeds of the new loan for general corporate and working capital purposes. The company is also currently considering additional near-term financing options to address its future liquidity needs.
Earlier this month, Greenbrook entered into the 18th amendment to its credit facility with Madryn, securing an additional $2,045,685.28 in senior secured term loans.
