- 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/well-health-reports-on-crh-medicals-upsized-us300m--revolving-credit-facility-with-jp-morgan-301276596.html
SOURCE WELL Health Technologies Corp.