Central Bank & Trust will provide a new $4 million term loan and a $2.5 million operating line of credit for Assure, which will use the loan facility to replace a current $3 million facility with Bank of Oklahoma.
“Closing on this attractive new credit facility is a milestone for Assure and a testament to the substantial progress we have made expanding our platform and improving our cash collections. The agreement provides the company with additional financial flexibility at far lower borrowing costs than alternate options typically available to emerging growth companies,” John A. Farlinger, executive chairman and CEO of Assure, said. “We are pleased to strengthen our balance sheet given the uncertainties associated with the global pandemic and also to access the capital necessary to support our business as we accelerate our next phase of growth.”
Under the conditions of the agreement governing the loan facility, the term loan bears interest at the Wall Street Journal prime rate (WSJ) plus 2% and matures on Aug. 12, 2024. Commencing on Sept. 1, 2020, interest on the term loan is payable on the first calendar day of each month until May 1, 2021. Commencing on Aug. 1, 2021, principal payments in the amount of $307,695, together with interest, shall be made quarterly until maturity. In addition, the operating line bears interest at a rate of WSJ plus 2% and matures on Aug. 12, 2022. Commencing on Sept. 1, 2020, the operating line is repayable, together with interest, on the first calendar day of each month until maturity. The use of proceeds from both facilities will be utilized to repay certain outstanding indebtedness, for working capital and general corporate purposes and for the funding of the company’s expansion plans. Assure did not issue any shares, warrants or options in connection with this transaction.
The loan facility is secured by a first-ranking security interest in all of the present and future undertakings, property and assets of the company and its subsidiaries. Scott Page, an independent director of Assure and the CEO of Central Bank & Trust, recused himself from any discussions and voting related to the approval of the loan facility by Assure.
Assure is a Colorado-based company that works with neurosurgeons and orthopedic spine surgeons to provide a turnkey suite of services that support intraoperative neuromonitoring activities during invasive surgeries.
