CareCloud, a leader in healthcare technology, closed a new $10 million credit facility with Provident Bank on September 3, 2025.
Approximately $8.3 million was drawn down to support the recent acquisition of Medsphere Systems Corporation's assets.
The new facility replaces the prior Wells Fargo promissory note with more favorable terms, providing increased liquidity and supporting future growth.
Improved Flexibility and Lower Borrowing Cost
The new credit facility offers CareCloud improved flexibility, a lower borrowing cost, and financial strength to execute its strategy.
Support for Medsphere Acquisition
The credit facility supports the recent Medsphere acquisition, with $8.25 million paid from cash flow and the balance financed through the facility.
Favorable Terms
The Provident facility bears an interest rate of SOFR plus 3%, presently less than 7.5%, providing a significant discount compared to the Wells Fargo promissory note.
- The new credit facility with Provident Bank strengthens CareCloud's financial position while enhancing liquidity for future operations and growth initiatives.
- The lower borrowing cost and improved terms allow CareCloud to focus on executing its strategic plans effectively and pay down its obligations.
CareCloud's new credit facility with Provident Bank marks a significant step towards strengthening its financial capabilities and supporting its growth strategies.