Assure Holdings, a provider of intraoperative neuromonitoring services, entered into an amending agreement to its commitment letter dated March 8, 2021, with Centurion Financial Trust, an investment trust managed by Centurion Asset Management, in respect to the company’s $11 million credit facility with Centurion. The credit facility is comprised of a $9 million senior term loan, funded in two tranches of $6 million and $3 million, and a $2 million senior revolving loan. The first tranche of the senior term loan and the revolving loan were previously funded.
Pursuant to the amending agreement, upon satisfaction of the conditions set forth therein, the company may now access the second tranche of the senior term loan in the amount of $3 million to fund organic growth and for general working capital purposes. The second tranche of the senior term loan was previously reserved solely for funding acquisition transactions.
“The amended credit facility is another step in our efforts to improve our capital structure as we accelerate our next phase of growth,” John A. Farlinger, executive chairman and CEO of Assure, said. “The amended credit facility provides the flexibility to enable Assure to continue to invest in our most promising 2022 growth initiatives, including the previously announced system-wide contract with Premier, Inc., expanding our high-margin remote neurology platform and extending our operational footprint.”
“Centurion believes in Assure’s strategic direction, market potential and management’s proven ability to deliver,” Daryl W. Boyce, executive vice president of corporate finance at Centurion, said. “We are pleased to continue our partnership with Assure on a capital solution to help grow the company.”
The second tranche of the senior term loan will now be made available to the company to fund organic growth initiatives and for general working capital purposes. Interest on the credit facility accrues at an annual rate equal to the greater of 9.5% per annum or the Royal Bank of Canada Prime Rate plus 7.05% per annum, calculated and compounded monthly in arrears and payable on the first business day of each month in arrears. In addition, and pursuant to the credit facility, Assure shall pay Centurion a monthly standby fee of 1.5% per annum on any undrawn balance of the credit facility calculated and compounded monthly in arrears and payable on the first business day of each month in arrears.
The credit facility matures on June 9, 2025, and is secured by a first ranking security interest in all of the present and future assets of Assure and certain of its subsidiaries and affiliates. The credit facility is guaranteed by Assure.
