CRH Medical extends credit facility, increases it to $100 million

By Angela McDaniels

Tacoma, Wash., June 26 – CRH Medical Corp. increased its credit facility to $100 million from $55 million and made other changes, according to a company news release.

The credit facility now consists of a $75 million revolving credit facility and a $25 million term loan.

The maturity date was extended to June 26, 2020, and the revolver now has a $25 million accordion facility.

The interest rate and the standby fees were reduced. The amendment lowered the cost of capital to about 3.5% per year.

The new term loan will be repaid in quarterly installments of 2.5% of the initial principal amount, with a balloon payment due at maturity.

The lending syndicate is led by Bank of Nova Scotia, includes U.S. Bank NA, Canada Branch and has been expanded to include JPMorgan Chase Bank, NA as a new lender.

The credit facility will be used to fund future acquisitions by CRH and to repay all of the debt provided to CRH by Crown Capital Fund III Management Inc. in December 2014, which bears an interest rate of 12%.

The company said the amendment gives it flexibility for additional acquisitions and a credit framework for future growth.

CRH is a commercial health-care products and services company based in Vancouver, B.C.

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