Digirad Corporation Announces Closing of Credit Facility with Comerica Bank
June 23 2017 - 12:30PM
Digirad Corporation (NASDAQ:DRAD), a leading provider of healthcare
solutions on an as needed, when needed, and where needed basis,
announced today 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.”
About Digirad
Digirad delivers convenient, effective, and efficient healthcare
solutions on an as needed, when needed, and where needed
basis. Digirad’s diverse portfolio of mobile healthcare
solutions and medical equipment and services, including diagnostic
imaging and patient monitoring, provides hospitals, physician
practices, and imaging centers throughout the United States access
to technology and services necessary to provide exceptional patient
care in the rapidly changing healthcare environment. For more
information, please visit www.digirad.com.
Forward-Looking Statements
This press release contains statements that are
forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995. Some of these forward-looking
statements can be identified by the use of forward-looking words
such as “believes,” “expects,” “may,” “will,” “should,” “seek,”
“approximately,” “intends,” “plans,” “estimates,” or “anticipates,”
or the negative of those words or other comparable terminology, or
in specific statements such as the Company’s ability to deliver
value to customers, the ability to grow and generate positive cash
flow, the ability to execute on restructuring activities, and
ability to successfully execute acquisitions. These forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from the statements made. These
risks are detailed in Digirad’s filings with the U.S. Securities
and Exchange Commission, including the Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
other reports. Readers are cautioned to not place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, and Digirad undertakes no
obligation to revise or update the forward-looking statements
contained herein.
For more information contact:
Jeffry Keyes
Chief Financial Officer
858-726-1600
ir@digirad.com
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