TRANSACTIONS

Selected financing solutions

CRH Medical

CRH Medical

Who: CRH Medical
Amount: $22.5 Million
Type of Transaction: Acquisition Financing
Date: December 2014

Case Study

Crown and owners enjoy a 450% share increase

$22.5MM subordinate loan enabled transformative US$58.6 MM acquisition.

  • Publicly listed medical company
  • Provides physicians with innovative products and services primarily for the treatment of gastrointestinal diseases

Situation Overview

  • Announced that it had entered into an agreement to acquire Gastroenterology Anesthesia Associates for US$58.6 MM
  • Expected to be a transformational acquisition
  • CRH was sensitive to ownership dilution

Solution

  • $22.5 MM, 42 month subordinated loan issued in December 2014
  • 12% interest rate
  • Crown was issued common shares as part of the financing fee
  • Since the transaction CRH’s share price has increased over 450%