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The ABL Advisor Deal Tables
SELECTED TRANSACTION DETAILS
CRH Secures $33MM Credit Facility From Scotiabank
Monday, November 30, 2015
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Lenders/Participants
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The Bank of Nova Scotia [Lender]
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Structure
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Senior Secured Revolver
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Amount
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$33.000
Million
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Borrower(s)
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CRH Medical Corporation
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Description
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The facility will replace existing debt and will be used to assist in the financing of potential future acquisitions. The facility has initially been used to repay in full CRH's senior secured credit facility with Knight Therapeutics Inc. ("Knight") in the amount of U.S. $22 million, and to repay an unsecured subordinated loan to the Bloom Burton Healthcare Structured Lending Fund II in the amount of U.S. $2 million. The interest rate on the loans repaid was 10% and 12%, respectively. The company's outstanding indebtedness to Crown Capital Partners ("Crown") in the amount of CAD $22.5 million will remain in place. CRH plans to use the facility as a revolving facility, keeping cash balances low to further reduce interest expense. The approximate financing expense savings for 2016 is expected to be U.S.$2.5. million. The interest for the facility is calculated using a set formula with a base rate plus 2.5% - 3.0%, depending on the company's total debt to EBITDA ratio. Under the facility, using the current base rate, CRH has an expected total interest cost of approximately 3.5% per annum. The facility matures on April 30, 2018 and is self-amortizing with fixed quarterly repayments of approximately 5% of the outstanding balance each quarter.
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Industry
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Medical
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| Related Tags |
The Bank of Nova Scotia
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ABL Advisor
Deal Tables
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