CIT Serves as Sole Lead Arranger on $110 Million Financing for Quipt Home Medical

Rhea-AI Summary

CIT, a division of First Citizens Bank, has provided $110 million in senior secured credit facilities to Quipt Home Medical Corp. The financing comprises a delayed draw term loan and a revolving credit facility, aimed at refinancing existing debt and facilitating future growth, including acquisitions. Quipt, a leader in home medical equipment focused on in-home monitoring, views this financing as a validation of its business model and a means to pursue its aggressive growth strategy while maintaining a healthy balance sheet.

Positive

• CIT provided $110 million in financing to Quipt, supporting its growth strategy.
• Financing will be used for debt refinancing and potential acquisitions.
• Quipt is positioned as a leader in the in-home respiratory solutions market.

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• None.

NEW YORK, Sept. 19, 2022 /PRNewswire/ -- CIT, a division of First Citizens Bank, today announced that its Healthcare Finance business has provided $110 million in senior secured credit facilities to Quipt Home Medical Corp.

Headquartered in Cincinnati, Ohio, Quipt is a leader in the home medical equipment industry with a focus on in-home monitoring and disease management services including end-to-end respiratory solutions.

The financing consists of a delayed draw term loan and a revolving credit facility. Proceeds will be used to refinance existing debt and provide capital for future growth, including acquisitions. CIT served as administrative agent and sole lead arranger.

"We believe this financing validates the strength of our business model and will enable us to continue to pursue our aggressive growth strategy," said Greg Crawford, Chairman and CEO of Quipt.  "Additionally, we continue to source opportunities across the United States in attractive markets and believe the ability to access meaningful additional funding leaves us well positioned to capitalize on opportunities as they present themselves. As always, we will continue to remain very disciplined in our capital allocation strategy, maintaining a very healthy balance sheet with a conservative leverage structure."

"We greatly appreciated the value of CIT's agility and deep industry knowledge in understanding our needs and arranging this financing package, which allows us to optimize financial performance and shareholder value," said Hardik Mehta, CFO of Quipt.

"Quipt is an undisputed leader in in-home respiratory solutions for U.S. patients and is poised to continue expanding its services and geographic reach," said William Douglass, managing director and group head for CIT Healthcare Finance.

"We have worked to support Quipt's financing needs in the past and are pleased to arrange this latest senior secured financing to enable them to continue successfully pursuing their ambitious business objectives," said Michael Coiley, a managing director in CIT Healthcare Finance.

CIT's Healthcare Finance business provides comprehensive financing and banking solutions to healthcare companies across the U.S. By using a client-focused and industry-centric model, Healthcare Finance can tailor its products and services to help clients meet their needs for capital.

About CIT

CIT is a division of First Citizens Bank, the largest family-controlled bank in the United States, continuing a unique legacy of strength, stability and long-term thinking that has spanned generations. Parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $100 billion in assets. The company's commercial banking segment brings a wide array of best-in-class lending, leasing and banking services to middle-market companies and small businesses from coast to coast. First Citizens also operates a nationwide direct bank and a network of more than 550 branches in 22 states, many in high-growth markets. Industry specialists bring a depth of expertise that helps businesses and individuals meet their specific goals at every stage of their financial journey. Discover more at cit.com/firstcitizens.

MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com

 

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SOURCE CIT, a division of First Citizens Bank

FAQ

What is the significance of CIT's $110 million financing for FCNCA?

The $110 million financing will help Quipt Home Medical refinance debt and fund future acquisitions, potentially enhancing shareholder value for FCNCA.

How will the financing impact Quipt Home Medical Corp's growth strategy?

The financing is intended to support Quipt's aggressive growth strategy and expansion efforts in the healthcare market.

What types of facilities are included in the $110 million financing by CIT?

The financing consists of a delayed draw term loan and a revolving credit facility.

Who arranged the $110 million financing for Quipt Home Medical?

CIT served as the administrative agent and sole lead arranger for the financing.

When was the financing for Quipt Home Medical Corp announced?

The financing was announced on September 19, 2022.