CareCloud Pays Off Credit Line, Signs an Updated Credit Facility Agreement
CareCloud (Nasdaq: CCLD) announced the complete payoff of its Silicon Valley Bank credit facility line, achieving a key 2024 objective ahead of schedule. Starting 2024 with a $10 million outstanding balance, the company cleared the debt by Q3 end. Additionally, CareCloud secured reduced borrowing fees and lowered its revolving credit facility limit, resulting in approximately $140,000 in annual savings. The company maintains an unused, available credit facility line of $10 million under the Ninth Loan Modification Agreement dated October 25, 2024.
CareCloud (Nasdaq: CCLD) ha annunciato il completo rimborso del suo prestito presso la Silicon Valley Bank, raggiungendo un obiettivo chiave per il 2024 anticipatamente. Iniziando il 2024 con un saldo in sospeso di 10 milioni di dollari, l'azienda ha estinto il debito entro la fine del terzo trimestre. Inoltre, CareCloud ha ottenuto la riduzione delle spese di prestito e abbassato il limite del suo concessione di credito rotativo, portando a un risparmio annuale di circa 140.000 dollari. L'azienda mantiene una linea di credito disponibile non utilizzata di 10 milioni di dollari ai sensi del Nono Accordo di Modifica del Prestito datato 25 ottobre 2024.
CareCloud (Nasdaq: CCLD) anunció el pago completo de su línea de crédito de Silicon Valley Bank, logrando un objetivo clave para 2024 anticipadamente. Comenzando el 2024 con un saldo pendiente de 10 millones de dólares, la empresa saldó la deuda al finalizar el tercer trimestre. Además, CareCloud logró reducir las tarifas de préstamos y disminuyó su límite de línea de crédito rotativo, resultando en aproximadamente 140,000 dólares en ahorros anuales. La compañía mantiene una línea de crédito disponible no utilizada de 10 millones de dólares bajo el Noveno Acuerdo de Modificación de Préstamo fechado el 25 de octubre de 2024.
CareCloud (Nasdaq: CCLD)는 실리콘밸리은행 신용 시설의 완전 상환을 발표하며, 2024년 주요 목표를 예정보다 앞당겨 달성했습니다. 2024년을 1천만 달러의 미지급 잔액으로 시작한 회사는 3분기 말까지 부채를 청산했습니다. 또한, CareCloud는 대출 수수료를 줄이고 회전 신용 시설 한도를 낮춰 연간 약 14만 달러의 절약 효과를 얻었습니다. 회사는 2024년 10월 25일자 제9차 대출 수정 계약에 따라 사용되지 않은 1천만 달러의 신용 시설을 유지하고 있습니다.
CareCloud (Nasdaq: CCLD) a annoncé le remboursement complet de sa , atteignant ainsi un objectif clé pour 2024 en avance. Commençant 2024 avec un solde impayé de 10 millions de dollars, l'entreprise a effacé sa dette d'ici la fin du troisième trimestre. De plus, CareCloud a obtenu une réduction des frais d'emprunt et a abaissé la limite de sa ligne de crédit renouvelable, entraînant des économies annuelles d'environ 140 000 dollars. L'entreprise maintient une ligne de crédit inutilisée de 10 millions de dollars conformément au Neuvième Accord de Modification de Prêt daté du 25 octobre 2024.
CareCloud (Nasdaq: CCLD) gab die vollständige Tilgung seiner Kreditlinie bei der Silicon Valley Bank bekannt und erreichte damit ein wichtiges Ziel für 2024 vorfristig. Mit einem ausstehenden Saldo von 10 Millionen Dollar begann das Unternehmen das Jahr 2024 und tilgte die Schulden bis zum Ende des dritten Quartals. Darüber hinaus sicherte sich CareCloud reduzierte Kreditkosten und senkte das Limit seiner revolvierenden Kreditlinie, was zu jährlichen Einsparungen von etwa 140.000 Dollar führte. Das Unternehmen hält unter dem Neunten Kreditänderungsvertrag vom 25. Oktober 2024 eine ungenutzte Kreditlinie von 10 Millionen Dollar bereit.
- Full payoff of $10 million credit facility debt ahead of schedule
- Secured reduction in borrowing fees resulting in $140,000 annual savings
- Improved free cash flow generation
- None.
Insights
This debt payoff and credit facility restructuring marks a significant positive development for CareCloud. The company has eliminated a
The early debt retirement not only improves the balance sheet but also reduces interest expenses, directly benefiting the bottom line. For a company with a market cap of about
The maintenance of an unused credit facility provides a valuable safety net while the reduced fees demonstrate management's focus on cost optimization. This strategic move aligns with broader efficiency initiatives that should enhance shareholder value.
SOMERSET, N.J., Oct. 28, 2024 (GLOBE NEWSWIRE) -- -- CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology solutions for medical practices and health systems nationwide, today announced that it has fully paid down its credit facility line with Silicon Valley Bank (“SVB”), achieving a key 2024 objective. Additionally, CareCloud requested and secured a reduction in its borrowing fees and lowered its overall revolving credit facility limit.
“We are thrilled to have reached this important strategic milestone,” said Norm Roth, Interim CFO and Corporate Controller of CareCloud. “We started 2024 with a
“Along with eliminating the credit facility balance — which had been incurring interest expense since the beginning of the year — we sought and achieved a reduction in the available amount of our credit line. This reduction will lower the annual anniversary and unused revolving line facility fees. These savings amount to approximately
Pursuant to the Company’s Ninth Loan Modification Agreement, dated October 25, 2024, with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Agreement”), the Company continues to maintain an unused, but available, credit facility line of
About CareCloud
CareCloud brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health at www.carecloud.com.
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SOURCE CareCloud
Company and Investor Contact:
Stephen Snyder
President
CareCloud, Inc.
ir@carecloud.com
FAQ
How much debt did CareCloud (CCLD) pay off in its SVB credit facility in 2024?
What annual cost savings will CareCloud (CCLD) achieve from its new credit facility agreement?