No 'bad news' here. I fact they upped the total lending to $110 M USD. Well done QIPT!
Senior Credit Facilities Significantly Enhances Balance Sheet Flexibility
CINCINNATI, Sept. 19, 2022 — Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is very pleased to announce the closing of $110,000,000 in senior secured credit facilities with CIT Bank, N.A. (“CIT”), a division of First-Citizens Bank & Trust Company. The senior secured credit facilities are in the aggregate amount of $110,000,000 (comprised of a term loan facility in an aggregate principal amount of $5,000,000, a delayed draw term loan facility in an aggregate principal amount of $85,000,000 and a revolving credit facility in an aggregate principal amount of $20,000,000 (collectively, the “Senior Credit Facilities”). The Company originally announced this transaction on August 15, 2022 when it executed a binding commitment letter with CIT for up to $80,000,000 in Senior Credit Facilities. However, as a result of strong demand from CIT and its syndicate of lenders the Senior Credit Facilities were increased.
The Senior Credit Facilities are evidenced by an Amended and Restated Credit and Guaranty Agreement, which amend and restate the original Credit Agreement dated September 18, 2020 between Quipt (and certain subsidiaries) and CIT (and other lenders). The primary use of proceeds of any loans made under the Senior Credit Facilities will be to finance potential future acquisitions and general working capital purposes.