Assure Announces Amendment to Credit Facility to Allow Funding of Second Tranche of the Senior Term Loan for Working Capital Purposes, Increasing Access to Previously Restricted Line of Credit
DENVER, November 24, 2021 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (NASDAQ: IONM; TSXV: IOM), a provider of intraoperative neuromonitoring services, is pleased to announce that it has entered into an amending agreement (the “Amending Agreement”) to its Commitment Letter dated March 8, 2021 (the “Commitment Letter”), with Centurion Financial Trust, an investment trust managed by Centurion Asset Management Inc. (“Centurion”) in respect of the Company’s $11,000,000 credit facility (the “Credit Facility”) with Centurion comprised of a $9,000,000 senior term loan (the “Senior Term Loan”), funded in two tranches of $6,000,000 and $3,000,000, and a $2,000,000 senior revolving loan (the “Revolving Loan”). The first tranche of the Senior Term Loan and the Revolving Loan were previously funded.
Pursuant to the Amending Agreement, upon satisfaction of the conditions precedent set forth therein, the Company may now access the second tranche of the Senior Term Loan in the amount of $3,000,000 to fund organic growth and for general working capital purposes. The second tranche of the Senior Term Loan was previously reserved solely for funding acquisition transactions.
“The amended Credit Facility is another step in our efforts to improve our capital structure as we accelerate our next phase of growth,” said John A. Farlinger, Assure’s executive chairman and CEO. “The amended Credit Facility provides the flexibility to enable Assure to continue to invest in our most promising 2022 growth initiatives including the previously announced system-wide contract with Premier, Inc., expanding our high-margin remote neurology platform and extending our operational footprint.”
“Centurion believes in Assure’s strategic direction, market potential and management’s proven ability to deliver,” said Daryl W. Boyce, Executive Vice President, Corporate Finance of Centurion. “We are pleased to continue our partnership with Assure on a capital solution to help grow the Company.”
The second tranche of the Senior Term Loan will now be made available to the Company to fund organic growth initiatives and for general working capital purposes. Interest on the Credit Facility accrues at an annual rate equal to the greater of 9.5% per annum or the Royal Bank of Canada Prime Rate plus 7.05% per annum, calculated and compounded monthly in arrears and payable on the first business day of each month in arrears. In addition, and pursuant to the Credit Facility, the Company shall pay Centurion a monthly standby fee of 1.50% per annum on any undrawn balance of the Credit Facility calculated and compounded monthly in arrears and payable on the first business day of each month in arrears. .
