Hooper Holmes Announces New $7 million Credit Agreement
May 02 2016 - 7:00AM
Business Wire
Hooper Holmes, Inc. (NYSE MKT:HH) announced that it has entered
into a new $7 million credit facility agreement with SCM Specialty
Finance Opportunities Fund, L.P., an affiliate of CNH Finance,
L.P.
This agreement replaces the Company’s previous credit facility
with ACF FinCo I LP, as assignee of Keltic Financial Partners II,
LP, thereby eliminating the requirement of the Company to issue an
additional warrant for the purchase of common stock valued at $1.25
million to SWK Funding LLC, the holder of the Company’s ongoing
April 2015 term loan. Borrowings under the new agreement with SCM
Specialty Finance will bear interest at a fluctuating rate that is
equal to the Prime Rate plus 5.5%, with an effective rate which is
economically equal to the prior agreement with ACF, inclusive of
fees and other charges. The new credit facility will be available
for general corporate purposes and growth initiatives.
Henry Dubois, President and CEO of Hooper Holmes commented, "As
we have discussed, one of our key initiatives has been to improve
our capital structure. We have made great strides in doing that
since the beginning of the year by raising new equity through our
successful Rights Offering, bringing in new capital from an
affiliate of Kanon Ventures, repaying principal under our term
loan, and establishing this new financing relationship. This new
credit facility with SCM, which has the same total cost of funds as
our prior agreement with ACF, eliminates the need to issue warrants
that would have represented an estimated 7% dilution to our
shareholders. We look forward to working with SCM as we execute
against our growth-oriented business plan."
About Hooper Holmes
Hooper Holmes mobilizes a national network of health
professionals to provide on-site health screenings, laboratory
testing, risk assessment and sample collection services to wellness
and disease management companies, employers and brokers, government
organizations and academic institutions nationwide. Under the
Accountable Health Solutions brand, the Company combines smart
technology, healthcare and behavior change expertise to offer
comprehensive health and wellness programs that improve health,
increase efficiencies and reduce healthcare delivery costs.
More information is available at hooperholmes.com and at
accountablehealthsolutions.com.
This press release contains “forward-looking” statements, as
such term is defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on the
Company’s current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions. Among the important
factors that could cause actual results to differ materially from
those expressed in, or implied by, these forward-looking statements
are risks related to customer concerns about our financial health,
our liquidity, uncertainty as to our working capital requirements
over the next 12 to 24 months, our ability to maintain compliance
with the financial covenants contained in our credit facility and
term loan, declines in our business, our competition, and our
ability to retain and grow our customer base and its related impact
on revenue, our ability to recognize operational efficiencies and
reduce costs, and our ability to realize the expected benefits from
the acquisition of Accountable Health Solutions and our strategic
alliance with Clinical Reference Laboratory. Additional information
about these and other factors that could affect the Company’s
business is set forth in the Company’s annual report on Form 10-K
for the year ended December 31, 2015, filed with the Securities and
Exchange Commission on March 30, 2016. The Company undertakes no
obligation to update or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this press release to reflect the occurrence of
unanticipated events, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160502005327/en/
Hooper HolmesHenry E. Dubois, 913-764-1045President and
CEOorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400