Oxford Finance delivered a secured credit facility totaling $30 million to Greenbrook TMS, a U.S. provider of transcranial magnetic stimulation therapy.
“We are very pleased to complete this debt financing that provides us with an immediate $15 million of minimally dilutive capital to strengthen our balance sheet and fund our ongoing growth. The up to $15 million in delayed draw tranches will allow us to prudently use additional debt as we further expand our network of Greenbrook TMS centers through both our organic growth strategy and potential acquisitions,” Bill Leonard, CEO of Greenbrook, said.
The credit facility provides a $15 million term loan and an option of drawing up to an additional $15 million in three $5 million delayed-draw term loan tranches within the next 24 months, subject to achieving specific financial milestones.
All amounts borrowed under the credit facility will bear interest at a rate equal to 30-day LIBOR plus 7.75%, subject to a minimum interest rate of 8.75%. The credit facility has a five-year term and amortizes over the life of the credit facility, with 1% of the principal amount outstanding amortized over years one to four, and the remaining outstanding principal repaid in equal installments over the fifth year.
Bloom Burton Securities acted as the Greenbrook’s sole financial adviser in connection with the transaction.
