Premier Health Secures Debt Financing for its Previously Announced Acquisition

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MONTREAL, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Premier Health of America Inc. (TSXV: PHA) (“Premier Health” or the “Corporation”), a leading Canadian Healthtech company, is announcing a $50 million secured credit package (the “Secured Financing”) aimed at closing the acquisition of Solution Staffing Inc. (the “Transaction”), which was announced on July 4th, 2023, including a refinancing of its current revolving facility and new term loans to finance the Transaction. The new structure is composed of five facilities, all of which are to be disbursed at closing of the Transaction pending TSX Venture Exchange acceptance under Policy 5.3 Expedited Acquisition Procedure as follows:

  • C$10M, 2-year revolving credit facility;  
  • C$25M, 2-year senior term loan;  
  • C$5M, 5-year senior term loan;
  • C$5M, 5-year subordinated debt; and
  • C$5M, 3.5-year subordinated debt.

The first two loans bear interest at variable rates plus a margin based on the level of certain financial ratios calculated at the end of each financial quarter. The other three loans have fixed rates averaging 14.3%.

The Secured Financing is led by the Royal Bank of Canada and BDC Capital Inc., sole affiliate of the Business Development Bank of Canada and is subject to certain conditions precedents, mainly the conclusion of the Transaction and other customary conditions. Collateral security for the Secured Financing will be provided by PHA and its subsidiaries.

About Premier Health

Premier Health is a leading Canadian Healthtech company that provides a comprehensive range of outsourced services solutions for healthcare needs to governments, corporations, and individuals. Premier Health uses its proprietary LiPHe software platform to lead the healthcare services sector digital transformation to provide patients with faster, cheaper, and more accessible care services.

For Further Information Please Contact:

Mr. Guy Daoust
Chief Financial Officer
Premier Health of America Inc.
gdaoust@premierhealth.ca / 1 514 794 4057

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This press release contains forward-looking information within the meaning of applicable securities legislation which reflects the current plans and expectations of the Corporation with respect to future events and financial performance. All statements other than statements of historical or current facts may be forward-looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘believes’, ‘continues’, ‘expects’, ‘projects’, ‘anticipates’, ‘plans’, ‘estimates’, ‘seeks’, ‘intends’, ‘targets’, ‘forecasts’, or negative or grammatical versions thereof and other similar expressions, or future or conditional verbs such as ‘may’, ‘will’, ‘should’, ‘would’ and ‘could’. Forward-looking information in this press release includes, but is not limited to, statements with respect to the anticipated closing of the Financing and the Transaction, and the terms thereof. Forward-looking information is based on management’s plans, estimates, projections, beliefs and opinions as at the date of this release, and the assumptions related to those plans, estimates, projections, beliefs and opinions may change; therefore, they are presented for the purpose of assisting the Corporation’s security holders in understanding management’s views at such time regarding those future outcomes and may not be appropriate for other purposes. Although the forward-looking information contained in this release is based on assumptions which the Corporation believes are reasonable, there can be no assurance that actual results will be consistent with such forward-looking information. The forward-looking information in this release relate only to events or information as of the date on which the statements are made and, except as specifically required by applicable securities laws, the Corporation undertakes no obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. There can be no assurance that the forward-looking information will prove to be accurate. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. The Corporation assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. These factors and others are more fully discussed in the filings of the Corporation with Canadian securities regulatory authorities available at www.sedarplus.ca


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