CRH Medical increases credit facility to US $100M repays Crown Capital loan

pcNewsWireCRH Medical Corporation (TSX: CRH; NYSE MKT: CRHM) has increased its credit facility from US $55 million to US $100 million.

The facility now consist of a US $75 million revolving credit facility and a US $25 million term facility. The syndicate, led by Scotiabank, includes US Bank National Association, Canada Branch and has been expanded to include JP Morgan Chase Bank, N.A. as a new lender.

In addition, the New Credit Facilities provide CRH access to an uncommitted accordion facility that would increase the amount of revolving credit facilities available to CRH by US $25 million.

The New Credit Facilities will be used to fund future acquisitions by CRH and to repay all of the debt owing by CRH to Crown Capital Fund III Management Inc. provided in December 2014.

News Release

CRH Increases Credit Facility to US$100 Million to Fund Additional Growth and Retire Crown Debt
JP Morgan Joins Syndicate of Lenders

VANCOUVER, B.C. – June 26, 2017 – CRH Medical Corporation (TSX: CRH) (NYSE MKT: CRHM) (“CRH” or the “Company”) announces that it has increased its credit facility (the “New Credit Facilities”) with a syndicate of lenders led by The Bank of Nova Scotia (“Scotiabank”).

The New Credit Facilities increase the amount of available credit from US$55 million to US$100 million and now consist of a US$75 million revolving credit facility and a US$25 million term facility. The syndicate, led by Scotiabank, includes US Bank National Association, Canada Branch (“U.S. Bank”) and has been expanded to include JP Morgan Chase Bank, N.A. (“JP Morgan”) as a new lender.

In addition, the New Credit Facilities provide CRH access to an uncommitted accordion facility that would increase the amount of revolving credit facilities available to CRH by US$25 million.

The New Credit Facilities will be used to fund future acquisitions by CRH and to repay all of the debt owing by CRH to Crown Capital Fund III Management Inc. (“Crown”) provided in December 2014 (the “Crown Debt”).

The New Credit Facilities also reduce the interest rate and the standby fees payable by CRH. The New Credit Facilities mature on June 26, 2020. The new term facility will be repaid in quarterly installments of 2.5% of the initial principal amount, with a balloon payment due upon maturity.

Richard Bear, Chief Financial Officer, stated, “We are pleased to announce our New Credit Facilities and the addition of JP Morgan to the lending syndicate. Our financial strength allows us to expand our access to low cost, non-dilutive capital to maintain our acquisition pace. We thank Scotiabank and U.S. Bank for their continued support and welcome JP Morgan as our newest partner”.

Features of the Amended Facilities include:
Introduction of a US$25 million accordion feature
Extension in maturity date to June 26, 2020
Provides flexibility to CRH for additional acquisitions and a credit framework for future growth
Lowers the cost of capital to approximately 3.50% per annum
Allows CRH to repay the Crown Debt (which bears an interest rate of 12% per annum)

Edward Wright, Chief Operating Officer, added, “The New Credit Facilities will provide the funds required to finance acquisitions we expect to close this year, enable us to repay Crown, reduce our interest expense, and provide us a funding platform for future growth”. Mr. Wright continued, “Crown has been an excellent and supportive partner – without their support, our first acquisition back in December of 2014 would not have been possible.”

Contact Information

Kettina Cordero, Director of Investor Relations
CRH Medical Corporation
800.660.2153 x1030
kcordero@crhmedcorp.com

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