CRH Medical has entered into a new, three-year revolving credit facility which provides up to $200 million in borrowing capacity, and represents an increase from the company’s previous $100 million facility.

The new facility includes a committed $125 million facility and access to an accordion feature that would increase the amount of credit available to CRH by $75 million.

The lending syndicate for the new facility is led by JPMorgan Chase Bank, and includes The Bank of Nova Scotia, U.S. Bank and Wells Fargo.

The new facility reduces the interest rate payable by CRH by as much as 100 bps to LIBOR plus 125 bps, up to LIBOR plus 175 bps, based upon CRH’s debt to EBITDA ratio. Other improved terms include a maximum debt to EBITDA ratio of 3x and a minimum interest coverage ratio of 3x.

“We are pleased with this new agreement as it provides access to increased liquidity and financial flexibility while lowering our borrowing costs. We expect the combination of our cash flow, capital structure and liquidity to support future value creation initiatives on behalf of our shareholders,” said Richard Bear, CRH’s chief financial officer.

CRH Medical is a North American company focused on providing gastroenterologists throughout the U.S. with innovative services and products for the treatment of gastrointestinal diseases.