a reminder of how much cash and undrawn credit WELL hascash, credit, and internal cashflow will fund the growth of the CRH/MyHealth book. both companies have long and proven track records of growing by way of tuck-in M&A. the accordion feature of corporate credit allows a credit increase to be obtained, without a fresh approval, in conjunction with an acquisition.
MyHealth is looking to grow cross-Canada, noting the diagnostic imaging market is highly fragmented. there are thousands of such clinics and most are regional firms only. it's a similar story to CRH who is consolidating a fragmented market of regional players, too.
this company is primed to grow again in 2022 by way of M&A.
CRH’s revolving credit facilities with JPMorgan Chase Bank (“JPM”)
The Company, through its wholly-owned subsidiary, CRH, holds a syndicated four-year revolving credit facility with JPM as syndicate lead which provides up to US$175 million in borrowing capacity and access to an accordion feature that increases the amount of the credit available to the Company by US$125 million. Interest on the facility is calculated with reference to LIBOR plus 1.25% to 2.5%, dependent on the total leverage ratio of the consolidated results of CRH. The JPM facility is secured by the assets of CRH and matures on April 22, 2025. Under the JPM facility, there are no quarterly or annual repayment requirements. As of September 30, 2021, the Company had drawn US$153,252 ($195,258) under this facility.
MyHealth’s credit facilities with Royal Bank of Canada (“RBC”)
The Company, through its wholly-owned subsidiary, MyHealth, holds a syndicated four-year revolving credit facility and a term loan with RBC as syndicate lead which provides up to $90 million revolving facility, a $50 million term loan facility and access to an accordion feature that increases the amount of the credit available to the Company by $60 million. Interest on the facility is calculated with reference to CDOR plus 1.50% to 3.25%, dependent on the total funded debt to EBITDA ratio of the consolidated results of MyHealth. The RBC facility is secured by the assets of MyHealth and matures on July 15, 2025. Under the RBC facility, there is a $625 quarterly repayment requirement, with the first repayment due on December 31, 2021. As of September 30, 2021, the Company had drawn $86,600 under this facility.