Quipt closes on $110 million expanded secured credit facility from CIT

By Mary-Katherine Stinson

Lexington, Ky., Sept. 19 – Quipt Home Medical Corp. closed on $110 million in expanded senior secured credit facilities from CIT Bank, NA, according to a press release.

This represents a $30 million increase from the original commitment obtained in August from CIT.

The facilities are comprised of a $5 million term loan facility, an $85 million delayed-draw term loan facility and a $20 million revolving credit facility.

As previously announced and reported, the original binding commitment letter with CIT for up to $80 million was executed on Aug. 15. However, due to strong demand from CIT and its syndicate of lenders the facilities were increased, according to the press release.

“Our operational resilience has allowed us to maintain strength in our cash flows, margins, and revenue base during a period of high inflation and supply chain limitations. Our diversified respiratory product offering and continued work to drive organizational efficiencies focused on better patient outcomes while we continue to reduce the cost of care has positioned us extremely well as we move towards 2023. Moreover, with significant financial resources and an attractive cost of capital, we are set to execute on our robust growth strategy and enhance long-term shareholder value,” chief financial officer Hardik Mehta said in the press release.

The credit facilities amend and restate the credit and guaranty agreement from Sept. 18, 2020 between Quipt and CIT (and other lenders).

Proceeds will be used to finance potential future acquisitions and for general working capital purposes.

CIT Bank acted as the administrative agent and as the sole lead arranger and sole bookrunner for the senior credit facilities.

Previously reported, the company announced in November 2021 it was working on an increase to its credit facility to $100 million from $20 million.

Quipt provides in-home monitoring and disease management services and is based in Wilder, Ky.

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