CareRx Secures Up to $70 Million in New Credit Deal
CareRx Corporation has secured a new credit agreement with National Bank of Canada, which includes up to $70 million in financing. The deal replaces CareRx's existing credit facility and provides a larger, more flexible capital structure to support the company's growth.
The New Credit Agreement includes a $20 million senior secured revolving operating facility, a $40 million senior secured term loan, and a $10 million senior secured acquisition and capex facility. CareRx can increase the Revolver and Acquisition/Capex Facility by up to an additional $20 million, giving the company additional access to capital as its needs evolve.
The facilities are secured by substantially all of the assets of CareRx and its subsidiaries, and are subject to customary financial and non-financial covenants. The New Credit Agreement will strengthen CareRx's balance sheet, lower its overall cost of capital, and provide dedicated capacity for investments in the business.