PROTECH HOME MEDICAL SECURES US$20 MILLION SENIOR CREDIT FACILITY WITH CIT GROUP’S HEALTHCARE FINANCE BUSINESS PROTECH WILL USE THE FACILITY TO FURTHER BOLSTER ITS BALANCE SHEET ENHANCING AND EXPANDING ITS ACQUSITION STRATEGY
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Cincinnati, Ohio – September 21, 2020 – Protech Home Medical Corp. (“Protech” or the “Company”) (TSXV: PTQ), (OTCQX: PTQQF), a U.S. based
leader in the home medical equipment industry, focused on end-to-end
respiratory care, is very pleased to announce that it has entered into a US$20
million senior credit facility with CIT (NYSE:CIT).
Protech has entered into an Asset-Based Revolving Credit Facility with CIT’S Healthcare Finance business, part of its Commercial Finance division, pursuant to which the lender has agreed to advance up to $20 million at a tiered rate, this agreement has a four year maturity and may be extended pursuant to both parties agreement.
“This senior credit facility with CIT is truly a momentous moment for Protech and I could not be prouder of the entire team for their continued hard work that led us to this very significant moment. With this new credit facility in place, we have added another tool in our toolbox that will further enable us to take the Company through its next stage of growth with our key objectives in mind,” said Greg Crawford, Chairman and CEO of Protech. “The Credit Facility provides the Company with greatly enhanced financial flexibility and further strengthens our financial position to ensure our ability to continue to execute on our growth strategy and enhance long term shareholder value. We are extremely excited to have entered into this agreement with CIT’s Healthcare Finance business, as it further validates our model, and provides for a continued expansion of our merger and acquisition strategy. We are confident that this additional bolstering of our balance sheet will help Protech extend its presence into existing and new markets. We look forward to growing with CIT as we aim to increase our credit facility over time.”
Chief Financial Officer, Hardik Mehta added, “Our financing team worked hand in hand with CIT to pursue the successful addition of this credit facility. In these unprecedented times, we were able to work quickly to bring this facility to a close in rapid time and thank Mike Coiley and the CIT team for their efforts. In this low interest rate environment, we are confident that the credit facility, with its attractive cost of capital, will allow Protech to accelerate its acquisition pace and augment the size of its acquisition targets, both with a disciplined focus on achieving greater levels of accretion. Our team looks forward to continuing and building upon its relationship with CIT.”
William Douglass, Managing Director and Group Head of CIT’s Healthcare Finance business, added, “Protech has a sophisticated and highly experienced management team that has an unwavering commitment to excellence. We are proud to support them and we look forward to working with them as they continue to grow and prosper.”