Quipt Home Medical Corp. (“
Quipt” or the
“
Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based
leader in the home medical equipment industry, focused on
end-to-end respiratory care, is very pleased to announce the
closing of $110,000,000 in senior secured credit facilities with
CIT Bank, N.A. (“
CIT”), a division of
First-Citizens Bank & Trust Company. The senior secured credit
facilities are in the aggregate amount of $110,000,000 (comprised
of a term loan facility in an aggregate principal amount of
$5,000,000, a delayed draw term loan facility in an aggregate
principal amount of $85,000,000 and a revolving credit facility in
an aggregate principal amount of $20,000,000 (collectively, the
“
Senior Credit Facilities”)). The Company
originally announced this transaction on August 15, 2022 when it
executed a binding commitment letter with CIT for up to $80,000,000
in Senior Credit Facilities. However, as a result of strong demand
from CIT and its syndicate of lenders the Senior Credit Facilities
were increased.
The Senior Credit Facilities are evidenced by an
Amended and Restated Credit and Guaranty Agreement, which amend and
restate the original Credit Agreement dated September 18, 2020
between Quipt (and certain subsidiaries) and CIT (and other
lenders). The primary use of proceeds of any loans made under the
Senior Credit Facilities will be to finance potential future
acquisitions and general working capital purposes.
Commentary
“The closing of senior credit facilities in the
amount of $110 million is an extraordinary milestone for the
Company, representing an additional $30 million from the initial
commitment letter with CIT, we announced in August. The significant
demand to participate in Quipt’s future growth led to the increased
size of the senior credit facilities which provide us substantial
balance sheet flexibility. We very much enjoyed working with the
team at CIT once again and appreciate the continued support from
all of the Company’s lenders as we carry out our strategic organic
and inorganic growth plans across the United States. We continue to
source opportunities across the United States in attractive markets
and believe the ability to access meaningful additional funding
leaves us well positioned to capitalize on opportunities as they
present themselves. As always, we will continue to remain very
disciplined in our capital allocation strategy, maintaining a very
healthy balance sheet with a conservative leverage structure,” said
Greg Crawford, Chairman and CEO of Quipt.
Chief Financial Officer, Hardik Mehta added,
“The $110 million of senior credit facilities further validate the
ongoing strength of our business model which continues to yield
solid financial and operating results. 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.”
“Quipt is an undisputed leader in in-home
respiratory solutions for U.S. patients and is well positioned to
continue expanding its services and geographic reach,” said William
Douglass, managing director and group head for CIT Healthcare
Finance.
“We have worked to support Quipt’s financing
needs in the past and are pleased to arrange this latest senior
secured financing to enable them to continue successfully pursuing
their ambitious business objectives,” said Michael Coiley, a
managing director in CIT Healthcare Finance.
CIT Bank acted as the administrative agent and
as the sole lead arranger and sole book runner for the Senior
Credit Facilities.
ABOUT QUIPT
HOME MEDICAL
CORP.
The Company provides in-home monitoring and
disease management services including end-to-end respiratory
solutions for patients in the United States healthcare market. It
seeks to continue to expand its offerings to include the management
of several chronic disease states focusing on patients with heart
or pulmonary disease, sleep disorders, reduced mobility, and other
chronic health conditions. The primary business objective of the
Company is to create shareholder value by offering a broader range
of services to patients in need of in-home monitoring and chronic
disease management. The Company’s organic growth strategy is to
increase annual revenue per patient by offering multiple services
to the same patient, consolidating the patient’s services, and
making life easier for the patient.
ABOUT CIT
CIT is a division of First Citizens Bank, the
largest family-controlled bank in the United States. Parent
company, First Citizens BancShares, Inc. (NASDAQ: FCNCA) has more
than $100 billion in assets. The company's commercial banking
segment brings a wide array of best-in-class lending, leasing and
banking services to middle-market companies and small businesses
from coast to coast. First Citizens also operates a nationwide
direct bank and a network of more than 600 branches in 22 states,
many in high-growth markets. Discover more at
cit.com/firstcitizens.
Reader Advisories
There can be no assurance that any of the
potential acquisitions in the Company’s pipeline or in negotiations
will be completed as or at all and no definitive agreements have
been executed. Completion of any transaction will be subject to
applicable director, shareholder, and regulatory approvals.
Unless otherwise specified, all dollar amounts
in this press release are expressed in U.S. dollars.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this press
release constitute "forward-looking information" as such term is
defined in applicable Canadian securities legislation. The words
"may", "would", "could", "should", "potential", "will", "seek",
"intend", "plan", "anticipate", "believe", "estimate", "expect",
"outlook", and similar expressions as they relate to the
Company, including: timing and use of proceeds of proceeds borrowed
under the Senior Credit Facilities; and Quipt’s acquisition
pipeline and pace and timing of any further acquisitions; are
intended to identify forward-looking information. All statements
other than statements of historical fact may be forward-looking
information. 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, including the Company
successfully identifying, negotiating and completing additional
acquisitions. Many factors could cause the actual results,
performance or achievements that may be expressed or implied by
such forward-looking information to vary from those described
herein should one or more of these risks or uncertainties
materialize. Examples of such risk factors include, without
limitation: credit; market (including equity, commodity, foreign
exchange and interest rate); liquidity; operational (including
technology and infrastructure); reputational; insurance;
strategic; regulatory; legal; environmental; capital adequacy;
the general business and economic conditions in the regions in
which the Company operates; the ability of the Company to execute
on key priorities, including the successful completion of
acquisitions, business retention, and strategic plans and to
attract, develop and retain key executives; difficulty
integrating newly acquired businesses; the ability to implement
business strategies and pursue business opportunities; 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 to the Company or
its affiliates; the impact of new and changes to, or application
of, current laws and regulations; decline of reimbursement rates;
dependence on few payors; possible new drug discoveries; a novel
business model; dependence on key suppliers; granting of permits
and licenses in a highly regulated business; the overall
difficult litigation environment, including in the U.S.;
increased competition; changes in foreign currency rates;
increased funding costs and market volatility due to market
illiquidity and competition for funding; the availability of funds
and resources to pursue operations; critical accounting estimates
and changes to accounting standards, policies, and methods used
by the Company; the occurrence of natural and unnatural
catastrophic events and claims resulting from such events; and
risks related to COVID-19 including various recommendations,
orders and measures of governmental authorities to try to limit
the pandemic, including travel restrictions, border closures,
non-essential business closures, quarantines, self-isolations,
shelters-in-place and social distancing, disruptions to markets,
economic activity, financing, supply chains and sales channels,
and a deterioration of general economic conditions including a
possible national or global recession; as well as those risk
factors discussed or referred to in the Company’s disclosure
documents filed with United States Securities and Exchange
Commission and available at www.sec.gov, and with the securities
regulatory authorities in certain provinces of Canada and
available at www.sedar.com. Should any factor affect the Company
in an unexpected manner, or should assumptions underlying the
forward-looking information prove incorrect, the actual results or
events may differ materially from the results or events
predicted. Any such forward-looking information is expressly
qualified in its entirety by this cautionary statement. Moreover,
the Company does not assume responsibility for the accuracy or
completeness of such forward-looking information. The
forward-looking information included in this press release is
made as of the date of this press release and the Company
undertakes no obligation to publicly update or revise any
forward-looking information, other than as required by applicable
law.
For further information please visit our website at
www.Quipthomemedical.com, or contact:
Cole StevensVP of Corporate Development Quipt Home Medical
Corp.859-300-6455cole.stevens@myquipt.com
Gregory CrawfordChief Executive OfficerQuipt Home Medical
Corp.859-300-6455investorinfo@myquipt.com
Quipt Home Medical (TSXV:QIPT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Quipt Home Medical (TSXV:QIPT)
Historical Stock Chart
From Apr 2023 to Apr 2024