Viemed Announces New Senior Secured Credit Facilities
November 29 2022 - 4:00PM
Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ:VMD and
TSX:VMD.TO), a national leader in respiratory care and
technology-enabled home medical equipment services, announced that
it has entered into new syndicated credit facilities, consisting of
a five-year senior secured revolving credit facility of up to $30
million and a five-year delayed draw term loan facility of up to
$30 million, which may be borrowed in multiple drawdowns. The new
credit facilities contain an accordion feature that allow the
Company to increase the size of the facilities by up to $30
million, subject to certain conditions, for a total borrowing
capacity of up to $90 million. Concurrently with the entry into the
new credit facilities, the Company retired its previous senior
credit facility, which included a $10 million unfunded line of
credit commitment and a building term note in the principal amount
of $4.7 million, scheduled to expire and mature in 2023 and 2026,
respectively.
“The significantly increased commitments enhance
the Company's financial flexibility and liquidity, providing
capacity to complement our impressive organic growth through
strategic acquisitions,” said Todd Zehnder, Viemed’s Chief
Operating Officer. “By working closely with our lending group, we
were able to tailor the structure of the credit facilities
according to our specific strategies and objectives. The scalable
features provide immediate access to capital when investment
opportunities are identified while also limiting interest expense
exposure. We appreciate the resounding confidence and strong
support of the lending group.”
Regions Bank will act as administrative and
collateral agent. Regions Capital Markets, a division of Regions
Bank, acted as sole lead arranger and sole bookrunner. In addition
to Regions, the lending group includes Hancock Whitney Bank and
Fifth Third Bank. The primary uses of the proceeds of the revolving
credit facility will be to refinance existing indebtedness, to
finance future potential acquisitions, for working capital
purposes, and for capital expenditures. The proceeds of the term
loan facility will be used to finance future potential acquisitions
and to pay transaction fees, costs and expenses related to such
acquisitions.
ABOUT VIEMED HEALTHCARE, INC.
Viemed is a provider of in-home medical
equipment and post-acute respiratory healthcare services in the
United States. Viemed’s service offerings are focused on effective
in-home treatment with clinical practitioners providing therapy and
counseling to patients in their homes using cutting edge
technology. Visit our website at www.viemed.com.
For further information, please contact:
Glen AkselrodBristol
Capital905-326-1888glen@bristolir.com
Todd ZehnderChief Operating OfficerViemed
Healthcare, Inc.337-504-3802investorinfo@viemed.com
Forward-Looking Statements
Certain statements contained in this press
release may constitute “forward-looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 or “forward-looking information” as such term is defined in
applicable Canadian securities legislation (collectively,
“forward-looking statements”). Often, but not always,
forward-looking statements can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “potential”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”,
“believes”, or “projects”, or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results “will”, “should”, “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved” or the
negative of these terms or comparable terminology. All statements
other than statements of historical fact, including those that
express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance,
including anticipated uses of proceeds of the credit facilities and
anticipated borrowing capacity, are not historical facts and may be
forward-looking statements and may involve estimates, assumptions
and uncertainties that could cause actual results or outcomes to
differ materially from those expressed in the forward-looking
statements. Such statements reflect the Company's current views and
intentions with respect to future events, and current information
available to the Company, and are subject to certain risks,
uncertainties and assumptions. Many factors could cause the actual
results, performance or achievements that may be expressed or
implied by such forward-looking statements to vary from those
described herein should one or more of these risks or uncertainties
materialize. These factors include, without limitation: the general
business, market and economic conditions in the regions in which
the Company operates; the impact of the COVID-19 pandemic and the
actions taken by governmental authorities, individuals and
companies in response to the pandemic on our business, financial
condition and results of operations, including on the Company's
patient base, revenues, employees, and equipment and supplies;
significant capital requirements and operating risks that the
Company may be subject to; the ability of the Company to implement
business strategies and pursue business opportunities; volatility
in the market price of the Company's common shares; the Company’s
novel business model; the risk that the clinical application of
treatments that demonstrate positive results in a study may not be
positively replicated or that such test results may not be
predictive of actual treatment results or may not result in the
adoption of such treatments by providers; the state of the capital
markets; the availability of funds and resources to pursue
operations; reductions in reimbursement rates and audits of
reimbursement claims by various governmental and private payor
entities; dependence on few payors; possible new drug discoveries;
dependence on key suppliers and the recall of certain Royal Philips
BiPAP and CPAP devices and ventilators that we distribute and sell;
granting of permits and licenses in a highly regulated business;
competition; low profit market segments; disruptions in or attacks
(including cyber-attacks) on the Company's information technology,
internet, network access or other voice or data communications
systems or services; the evolution of various types of fraud or
other criminal behavior to which the Company is exposed; the
failure of third parties to comply with their obligations;
difficulty integrating newly acquired businesses; the impact of new
and changes to, or application of, current laws and regulations;
the overall difficult litigation and regulatory environment;
increased competition; changes in foreign currency rates; increased
funding costs and market volatility due to market illiquidity and
competition for funding; critical accounting estimates and changes
to accounting standards, policies, and methods used by the Company;
the Company’s status as an emerging growth company and a smaller
reporting company; and the occurrence of natural and unnatural
catastrophic events or health epidemics or concerns, such as the
COVID-19 pandemic, and claims resulting from such events or
concerns; as well as those risk factors discussed or referred to in
the Company’s disclosure documents filed with the U.S. Securities
and Exchange Commission (the “SEC”) available on the SEC’s website
at www.sec.gov, including the Company’s most recent Annual Report
on Form 10-K and Quarterly Report on Form 10-Q, and with the
securities regulatory authorities in certain provinces of Canada
available at www.sedar.com. Should any factor affect the Company in
an unexpected manner, or should assumptions underlying the
forward-looking statements prove incorrect, the actual results or
events may differ materially from the results or events predicted.
Any such forward-looking statements are expressly qualified in
their entirety by this cautionary statement. Moreover, the Company
does not assume responsibility for the accuracy or completeness of
such forward-looking statements. The forward-looking statements
included in this press release are made as of the date of this
press release and the Company undertakes no obligation to publicly
update or revise any forward-looking statements, other than as
required by applicable law.
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