American CareSource Holdings (NASDAQ: ANCI), a leading national network of ancillary health care providers and operator of urgent care centers, announced today that it has closed on a $5 million line of credit with a top-tier U.S. bank, giving the Company funding to continue its strategy of acquiring urgent care centers.
The line of credit has a two-year term at a rate of LIBOR plus 1.75% per annum, which is currently 1.91%. The line is collateralized by the assets of the Company. The credit facility is further secured by personal guaranties given by a group of affiliated and unaffiliated individuals. The guaranties allowed the Company to negotiate more favorable terms than otherwise would have been available. The Company granted warrants to the guarantors as part of the agreement.
“The credit facility offers us financial flexibility at a very attractive interest rate. By increasing our liquidity we are able to continue to move quickly as acquisition opportunities arise,” said Dr. Richard W. Turner, Chairman of the Board and Chief Executive Officer of the Company.
In early 2014, American CareSource announced its entry into the urgent care market with the acquisitions of two centers in prominent Atlanta suburbs and two centers in and around Panama City, Fla. The Company also is currently negotiating to purchase several additional centers.