CareRx Corporation announced that it has entered into a binding commitment for a comprehensive refinancing transaction with a syndicate of lenders led by a Canadian Schedule I chartered bank and arranged and managed by Crown Private Credit Partners Inc. Under the terms of the Refinancing: The Lenders will provide a $20 million senior secured revolving operating loan and a $50 million senior secured term loan. The Company intends to use the proceeds of the Credit Facilities, plus available cash on hand, to repay $78 million of existing debt, including its existing $58 million term loan with Crown Private Credit and $20 million of subordinated debt. $47 million of the Term Loan and a portion of the Operating Loan will initially be drawn at closing, with future draws on the Term Loan available to fund certain capital expenditures.

The Credit Facilities have a five-year term, with a floating interest rate that will initially accrue at the rate of prime plus 2.75% at closing, with downward adjustments to as low as prime plus 2.00% as the Company's net senior debt to trailing-twelve-month EBITDA declines. Compared to its existing term loan and subordinated debt, the Company expects to initially save up to $1 million annually in interest charges. The Refinancing is subject to customary closing conditions and is anticipated to close on or before December 31, 2023.

However, there is no guarantee that closing will occur on such timeline, if at all.