Fifth Third Bank closed a $22 million credit agreement for American Shared Hospital Services, a provider of technology solutions for stereotactic radiosurgery and advanced radiation therapy equipment and services. The agreement is composed of three loan facilities.
The first facility is a $9.5 million term loan that will refinance $6.8 million of domestic Gamma Knife debt, while $1.6 million will primarily be used for two Gamma Knife reloads with two customers that recently extended their agreements. The remaining $1.1 million will be available for future projects.
The second facility is a term loan of $5.5 million, which will refinance American Shared Hospital Services’ PBRT Orlando equipment debt and provide additional working capital.
The third facility of the credit agreement is a $7 million revolving line of credit, which will be used to increase American Shared Hospital Services’ flexibility in negotiating future projects and also be available for general corporate purposes.
“This milestone transaction with Fifth Third Bank will enable [American Shared Hospital Services] to realize substantial savings from the refinancing of our existing debt, and at the same time, provide us with incremental capital to accelerate the growth of our business,” Ray Stachowiak, CEO of American Shared Hospital Services, said. “The transaction immediately lowers our cost of capital and provides ample financial resources to increase our capacity for additional projects through a more diversified business model. This includes broadening our product offerings and further expanding domestically and internationally with both wholesale and retail financing solutions. These actions, together with the new banking relationship with Fifth Third Bank, are key parts of our strategic plan to provide [American Shared Hospital Services] with a path to increased growth and sustained profitability.”
