Greenbrook TMS closes US$75 million credit facility with Madryn Asset Management
On July 14, 2022, Greenbrook TMS Inc. (TSX: GTMS, NASDAQ: GBNH) (“Greenbrook”) announced that it and its subsidiaries entered into a credit agreement for a US$75 million secured credit facility with Madryn Asset Management, LP (“Madryn”) and its affiliated entities. The facility provides Greenbrook with immediate access of up to US$55 million in term loans, as well as the potential to access up to an additional US$20 million in a single draw at any time on or prior to December 31, 2024 for purposes of funding future M&A activity.
The credit facility also provides Madryn with the option to convert up to US$5 million of the outstanding principal amount of the loan into common shares at a price per share equal to a 15% premium to the 30-day volume weighted average trading price of the common shares as of the closing date of the transaction, subject to customary anti-dilution adjustments and approval of the Toronto Stock Exchange (“TSX”) prior to each such issuance.
The ability to secure financing from a third party-lender was a condition of Greenbrook’s concurrently announced acquisition of Check Five LLC, doing business as “Success TMS” (“Success TMS”), which was successfully closed on July 14, 2022.
Greenbrook has used approximately US$10.1 million of the proceeds from the credit facility to repay in full the outstanding balance owing under its existing term loan with Oxford Finance LLC, which was then terminated.
Further information can be found on Business Wire’s website.
Success TMS, a Delaware limited liability company, is one of the largest providers of Transcranial Magnetic Stimulation (“TMS”) therapy in the United States, with 47 active locations throughout Florida, Pennsylvania, Illinois, New Jersey, Nevada and Wisconsin.
Greenbrook is a leading provider of TMS therapy, an FDA-cleared, non-invasive therapy for the treatment of Major Depressive Disorder and other mental health disorders, in the United States. TMS therapy provides local electromagnetic stimulation to specific brain regions known to be directly associated with mood regulation.