Assure Holdings, a provider of intraoperative neuromonitoring services (IONM), entered into a definitive agreement with Centurion Financial Trust, an investment trust formed by Centurion Asset Management, in respect to an $11 million credit facility comprised of a $6 million senior term loan, a $2 million senior revolving loan and a $3 million senior term acquisition line.
“We have capitalized on the recent momentum in our business to further strengthen our balance sheet and provide additional financial flexibility and liquidity,” John A. Farlinger, executive chairman and CEO at Assure Holdings, said. “This refinancing is expected to support our ability to take advantage of numerous growth opportunities, including organically extending the company’s operational footprint into new states and expanding our telehealth function for professional neurology services relating to IONM. In addition, this facility includes a line specifically for acquisitions, and our M&A pipeline remains very active.”
“We are pleased to partner with Assure on a capital solution to help grow the company,” Daryl W. Boyce, executive vice president of corporate finance at Centurion, said. “We believe in Assure’s business model, are impressed with the quality of the management team and are confident the company is well positioned for the future.”
Pursuant to the terms of the agreement, the senior term loan and the senior revolving loan will be advanced to Assure as of the date hereof. The senior term acquisition line will be made available to the company to fund future acquisitions, subject to certain conditions and approvals of Centurion. Interest on the credit facility will accrue at an annual rate equal to the greater of 9.5% per annum or the Royal Bank of Canada prime rate plus 7.05%, payable in monthly arrears. In addition, and pursuant to the agreement, Assure shall pay Centurion a monthly standby fee of 1.5% per annum on any undrawn balance of the credit facility, as well as a one-time non-refundable commitment fee of $247,500 on the first advance under the credit facility.
The credit facility will mature 48 months from the date hereof and is secured by a first ranking security interest in all of the present and future assets of the company and certain of its subsidiaries and affiliates. As more particularly set out in the agreement, Assure is guaranteeing the credit facility.
Assure expects to use the net proceeds of the credit facility to repay all outstanding amounts under the company’s previous credit facility, for general working capital purposes and to fund future acquisitions.