CareCloud announced the closing of a $50 million credit facility with Citizens Bank and Provident Bank, alongside plans to fully redeem its outstanding Series B Preferred Stock, marking a significant step in optimizing its capital structure.
Citizens Bank acted as lead arranger and administrative agent on the facility, with Provident Bank participating in the financing. The new credit facility provides non-dilutive capital, enhances liquidity, and supports the company’s continued strategic transformation.
As part of the transaction, CareCloud will redeem 100% of its 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock on May 15, 2026, following the required notice period. The move is expected to eliminate approximately $3.2 million in annual preferred dividend obligations and replace higher-cost equity with lower-cost institutional debt, improving financial flexibility and long-term shareholder value.
The company currently generates approximately $30 million in annualized adjusted EBITDA, underscoring the strength of its operating model and enabling its transition to institutional-grade financing. The refinancing reflects continued execution of CareCloud’s broader strategy to streamline operations, reduce costs, and strengthen its balance sheet.
With a simplified capital structure, CareCloud is positioning itself for its next phase of growth, focusing on expanding its AI-driven healthcare technology platform, enhancing revenue cycle management capabilities, and pursuing strategic initiatives to increase scale and operating leverage.
The company also detailed redemption terms for its Series B Preferred Stock, including a total redemption price of $27.52 per share, consisting of the base redemption price plus accrued and unpaid dividends. Following redemption, the preferred stock will be delisted from the Nasdaq Global Stock Market.
CareCloud provides AI-enabled healthcare technology and revenue cycle management solutions, serving more than 45,000 providers with tools designed to improve operational efficiency, streamline clinical workflows, and enhance patient experiences.
KEY QUOTES:
“This transaction represents a transformative step for CareCloud. With the full redemption of the Series B Preferred Stock, we are simplifying our capital structure and positioning the Company for its next phase of growth. We believe this strengthens our financial profile and enhances our ability to attract a broader base of institutional investors.”
Stephen Snyder, Chief Executive Officer of CareCloud
“We are pleased to have partnered closely with the company to optimize its capital structure and strategically position CareCloud for sustained growth and enhanced profitability.”
Matthew Rickert, Market Executive, and Alan Tekerlek, Managing Director, of Citizens
