Concurrent with its acquisition of CRH Medical, WELL Health Technologies entered into an amended senior secured credit arrangement for revolving credit facilities in the amount of $175 million and access to a $125 million accordion feature that increases the total aggregate amount of credit available to $300 million. The new facility replaced the senior secured credit facilities previously maintained by CRH.
The new facility matures in four years, carries a floating interest rate predicated on the U.S. prime and LIBOR rates, and is generally based on customary terms for similar credit arrangements in the healthcare sector of the United States. JPMorgan, CIBC and HSBC Bank Canada led the syndicate of lenders providing the facility. The lending syndicate also includes Wells Fargo Bank, the Bank of Nova Scotia and U.S. Bank.
The purpose of the new facility was to partially fund WELL’s acquisition of CRH as well as to facilitate CRH’s ongoing acquisition program in the United States. To date, CRH has completed more than 30 acquisitions of anesthesia-related businesses. The income generated from such businesses is expected to assist CRH in servicing debt and enables CRH to make further acquisitions. CRH has currently drawn approximately $135 million under the new facility, leaving $40 million of undrawn facilities and the undrawn $125 million accordion feature available to fund future expansion.
“We are pleased with the support and confidence that JPMorgan, CIBC and HSBC and the rest of the lending syndicate have shown in increasing CRH’s credit facilities. CRH is extremely acquisitive and we are committed to continuing its active acquisition program, which aligns perfectly with WELL’s own highly accretive and disciplined growth and capital allocation strategy,” Hamed Shahbazi, chairman and CEO of WELL Health Technologies, said. “The new debt facility combined with CRH’s own profitability and cash-flow generation will ensure that we can continue to allocate capital and increase WELL’s overall inorganic growth profile.”