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Comerica Bank Provides $25MM Revolver to Digirad

June 26, 2017, 07:08 AM
Filed Under: Healthcare

Digirad Corporation, a provider of healthcare solutions on an as needed, when needed, and where needed basis, announced that it has closed a new Revolving Credit Agreement with Comerica Bank.

The Revolving Credit Agreement is a five-year revolving credit facility, with a maximum credit amount of $25 million, of which the entire $25 million is immediately available. In conjunction with the closing of the Comerica Revolving Credit Agreement, the Company also announced the termination and payoff of its previous Credit Facility with Wells Fargo.

Digirad CFO Jeff Keyes said, “This new Revolving Credit Agreement provides us with significantly improved capital management flexibility.  Under the terms of the new agreement, we will enjoy no restrictions relative to dividend payments and equity purchases, as well as increased flexibility on acquisitions.  We will also benefit from lower overall fees and a lower overall effective interest rate.”

The new Comerica Revolving Credit Agreement has an overall interest rate of LIBOR plus 2.35%.The previous Credit Facility with Wells Fargo incurred interest at LIBOR plus 2.00% to 5.00%, with the largest tranches being at LIBOR plus 2.50% and 5.00%.

Keyes continued, “We believe Comerica is an excellent partner that will provide strong support for our business strategy.”

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