CareCloud Secures Credit Facility on Favorable Terms with Provident Bank to Support Medsphere Acquisition

Core Insights - CareCloud has closed a new $10 million credit facility with Provident Bank, replacing a prior promissory note obligation to Wells Fargo, which strengthens liquidity and supports future growth [1][2] - The new facility allows CareCloud to finance the recent acquisition of Medsphere Systems Corporation, which had a total purchase price of $16.5 million, with $8.25 million paid at closing from internal cash flow [2] - The interest rate on the Provident facility is SOFR plus 3%, currently equating to less than 7.5%, which is significantly lower than the previous Wells Fargo note [2] Financial Details - Approximately $8.3 million of the new credit facility was drawn down at closing to support the Medsphere acquisition [1] - The company intends to fully pay down the Medsphere-related obligation by mid-2026 through internally generated cash flow [2] - The Provident facility has a two-year term, providing improved flexibility and lower borrowing costs for CareCloud [2] Company Overview - CareCloud specializes in healthcare technology and AI-powered solutions, serving over 40,000 providers to enhance patient care while reducing administrative burdens [4] - The company's offerings include revenue cycle management, practice management, electronic health records, business intelligence, patient experience management, and digital health solutions [4]