Viemed Healthcare, a provider of respiratory care and technology-enabled home medical equipment services, entered into syndicated credit facilities, consisting of a five-year senior secured revolving credit facility of up to $30 million and a five-year delayed draw term loan facility of up to $30 million, which may be borrowed in multiple drawdowns. The new credit facilities contain an accordion feature that allow the company to increase the size of the facilities by up to $30 million, subject to certain conditions, for a total borrowing capacity of up to $90 million. Concurrently with the entry into the new credit facilities, the company retired its previous senior credit facility, which included a $10 million unfunded line of credit commitment and a building term note in the principal amount of $4.7 million, scheduled to expire and mature in 2023 and 2026, respectively.
“The significantly increased commitments enhance the Company’s financial flexibility and liquidity, providing capacity to complement our impressive organic growth through strategic acquisitions,” Todd Zehnder, chief operating officer of Viemed, said. “By working closely with our lending group, we were able to tailor the structure of the credit facilities according to our specific strategies and objectives. The scalable features provide immediate access to capital when investment opportunities are identified while also limiting interest expense exposure. We appreciate the resounding confidence and strong support of the lending group.”
Regions Bank will act as administrative and collateral agent. Regions Capital Markets, a division of Regions Bank, acted as sole lead arranger and sole bookrunner. In addition to Regions, the lending group includes Hancock Whitney Bank and Fifth Third Bank. The primary uses of the proceeds of the revolving credit facility will be to refinance existing indebtedness, to finance future potential acquisitions, for working capital purposes and for capital expenditures. The proceeds of the term loan facility will be used to finance future potential acquisitions and to pay transaction fees, costs and expenses related to such acquisitions.
