Market Overview

InfuSystem Announces New $36.5 Million Credit Facility

InfuSystem Holdings (NYSE: INFU), the leading national provider of infusion pumps and related services for the healthcare industry in the United States, announced today that it has replaced and refinanced its $35.0 million bank facility with a new $36.5 million credit facility, in order to provide additional financial and operational flexibility.

On November 30, 2012, the Company, advised by Houlihan Lokey, entered into a $36.5 million, four-year senior secured credit agreement with Wells Fargo Bank, N.A. and funds managed by PennantPark Investment Advisers, LLC. The new credit facility is comprised of an asset based loan revolver, Senior Term Loan, and Junior Term Loan bearing interest at a floating rate, which is currently 9.25%, substantially below the cost of the prior credit facility as amended.

"This new credit facility, developed in partnership with two preeminent financial lending institutions, optimizes our ability to execute our strategic business plan," said InfuSystem's Interim Chief Executive Officer, Dilip Singh. “It also represents another significant milestone in the reshaping of InfuSystem, and reflects the solid foundation the Company has established since the current leadership assumed full control of the Company during the second quarter of 2012.”

On November 14, 2012 the Company reported that it had returned to profitability in the third quarter ended September 30, 2012.

Jonathan Foster, InfuSytem's Chief Financial Officer, noted that the new credit facility will further strengthen the balance sheet. “We were able to obtain the new loan on competitive terms well ahead of the prior facility expiring on July 1, 2013, and expect to reduce our scheduled principal loan payments by approximately $2.1 million on an annual basis, further enhancing operational cash flow.”

Posted-In: News Financing

 

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