Skylight Health arranges $20 million facility for use in acquisition

By Mary Katherine Stinson

Lexington, Ky., May 3 – Skylight Health Group Inc. has arranged a new $20 million set facility, which will close concurrently with its $8 million acquisition of NeighborMD, according to a company press release.

The three-year facility will bear interest at SOFR plus 1,100 basis points and is being provided by a New York-based credit lender.

The principal will be amortized on a quarterly basis with a final balloon payment at maturity. It is subject to certain cash-sweep triggers.

Cash payments including interest will begin in July.

Payment may be made in full or in part any time during the term without any premium or penalty.

Terms of the new facility will allow for a $10 million draw down to fund the cash-on-closing acquisition of NeighborMD in addition to providing working capital to support integration costs and operating expenses.

In addition, the lender will also receive total consideration of approximately 4.5 million warrants with price and expiration determined at closing. Half of the warrants will be held in escrow and released proportionally to the prorated percentage of future draw downs.

Skylight is a health care services and technology company with executive offices in Canada. NeighborMD operates nine owned practices offering primary care services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.