American CareSource Secures $6M Line of Credit

American CareSource Holdings, Inc. (NASDAQ: ANCI), which, through its subsidiaries, operates urgent and primary care centers and a national network of ancillary healthcare providers, announced today that it has closed on a $6 million line of credit with a top-tier U.S. bank. The Company previously announced a $5 million line of credit with the same bank in July of this year. The Company intends to use a substantial portion of the new line to continue its acquisition of urgent and primary care centers. The line of credit has a fluctuating rate of LIBOR plus 1.75% per annum, which is currently 1.91% and matures on June 1, 2016. The line is collateralized by substantially all the assets of the Company and its subsidiaries. Similar to the July line of credit, further credit enhancement was provided from personal guaranties given by a group of affiliated and unaffiliated individuals, making it possible for the Company to negotiate more favorable terms than otherwise would have been available. The Company granted warrants to the guarantors as part of the arrangement. “The line of credit provides continuity for our acquisition strategy and we believe it to be the most advantageous source of funding for the Company and its shareholders at this time,” said Dr. Richard W. Turner, Chairman of the Board and Chief Executive Officer of the Company. In early 2014, American CareSource announced its entry into the urgent and primary care market and has subsequently acquired eight sites in the states of Georgia, Florida and Alabama.