- Concurrent with the completion of WELL's acquisition of CRH Medical, JPMorgan Chase Bank (" JP Morgan ") has provided CRH Medical with a US$300 million credit facility with joint book runners Canadian Imperial Bank of Commerce (" CIBC ") and HSBC Bank Canada. This credit facility replaces JP Morgan's previous US$200 million debt facility for CRH Medical.
- The new US$300M credit facility includes a committed line of credit of US$175 million and an accordion of US$125 million , and provides CRH with substantial capital in addition to the current drawn balance to continue its disciplined and highly successful M&A program.
VANCOUVER, BC , April 26, 2021 /PRNewswire/ - WELL Health Technologies Corp. (TSX: WELL) (" WELL "), a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, is pleased to report that concurrent with its acquisition of CRH Medical Corporation (" CRH "), CRH has entered into an amended senior secured credit arrangement (" New Facility ") administered by JP Morgan Chase Bank, N.A. in respect of revolving credit facilities in the amount of US$175 million and access to a US$125 million accordian feature that increases the total aggregate amount of credit available to US$300 million . The New Facility replaced the senior secured credit facilities previously maintained by CRH.
This New Facility matures in four years, carries a floating interest rate predicated on the U.S. prime and LIBOR rates, and is generally based on customary terms for similar credit arrangements in the United States healthcare sector. The New Facility is provided by a syndicate that was led by JP Morgan, CIBC and HSBC Bank Canada. The lending syndicate also includes Wells Fargo Bank, N.A., The Bank of Nova Scotia and U.S. Bank National Association.
The purpose of the New Facility was to partially fund WELL's acquisition of CRH as well as to facilitate CRH's ongoing acquisition program in the United States . To date, CRH has completed over 30 acquisitions of anesthesia-related businesses. We expect that the income generated from such businesses assists CRH to service such debt and enables CRH to make further strategic and opportunistic acquisitions. CRH has currently drawn approximately US$135 million under the New Facility, leaving US$40 million of undrawn facilities and the undrawn US$125 million accordian feature available to fund future expansion.
Hamed Shahbazi , Chairman and CEO of WELL commented, "We are pleased with the support and confidence that JP Morgan, CIBC and HSBC and the rest of the lending syndicate have shown in increasing CRH's credit facilities. CRH is extremely acquisitive and we are committed to continuing its active aquisition program, which aligns perfectly with WELL's own highly accretive and disciplined growth and capital allocation strategy. The new debt facility combined with CRH's own profitability and cash-flow generation will ensure that we can continue to allocate capital and increase WELL's overall inorganic growth profile."
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director|
About WELL Health Technologies Corp.
WELL is an omni-channel digital health company whose overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. As such, WELL owns and operates 27 primary healthcare clinics in both Canada and the US, operates a multi-national digital Electronic Medical Records (EMR) business serving thousands of healthcare clinics and health systems of all sizes, operates a multi-national portfolio of telehealth services which includes one of the largest telehealth service providers in Canada. WELL is also a provider of digital health, billing and cybersecurity related technology solutions. WELL is an acquisitive company that follows a disciplined and accretive capital allocation strategy. WELL is publicly traded on the Toronto Stock Exchange under the symbol " WELL ". To access the Company's telehealth service, visit: tiahealth.com , and for corporate information, visit: www.well.company .
About CRH Medical Corporation
CRH, a wholly owned subsidiary of WELL Health Technologies Corp., is a North American company focused on providing gastroenterologists throughout the United States with innovative services and products for the treatment of gastrointestinal diseases. In 2014, CRH became a full service gastroenterology anesthesia company that provides anesthesia services for patients undergoing endoscopic procedures in ambulatory surgical centers. To date, CRH has completed 33 anesthesia acquisitions, and now serves 72 ambulatory surgical centers in 15 states. In addition, CRH owns the "CRH O'Regan System", a single-use, disposable, hemorrhoid banding technology that is safe and highly effective in treating all grades of hemorrhoids. CRH distributes the O'Regan System, treatment protocols, operational and marketing expertise as a complete, turnkey package directly to gastroenterology practices, creating meaningful relationships with the gastroenterologists it serves. CRH's O'Regan System is currently used in all 48 lower US states.
Forward Looking Statements
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature including: Statements regarding WELL and CRH's acquisition strategies and CRH's ability to service the facaility. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "could", "would", "intend", "estimate", "plan", "anticipate", "expect", "believe" or the negative thereof or similar variations. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking statements, including: risks that WELL and/or CRH may not be able to identify and complete additional acquisitions on acceptable terms or at all; WELL and/or CRH may not recognize the perceived benefit of acquisitions; business disruption risks relating to COVID-19; regulatory risks, including those related to healthcare, privacy and data security; and other risks outlined in the Company's publicly filed documents available on SEDAR. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
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SOURCE WELL Health Technologies Corp.