0001493152-26-016464
SEC filingCareCloud entered a $50M credit facility with Citizens Bank and Provident Bank, including $40M term loan and $10M revolver, and elected to fully redeem all 1,511,372 shares of Series B Preferred Stock at $27.52 per share on May 15, 2026.
CareCloud secured a $50M senior secured credit facility led by Citizens Bank ($30M commitment) with Provident Bank ($20M), comprising a $40M term loan amortizing monthly from June 2026 over 4 years and a $10M revolving facility, both maturing on the 4th anniversary of closing. Interest accrues at SOFR/ABR plus 250bps (revolver) or 350bps (term), secured by substantially all assets with subsidiary guarantees. As post-closing collateral, Executive Chairman Mahmud Haq will pledge securities accounts within 45 days, receiving a warrant for 4.3M common shares at $5.00 strike (5-year term, anti-dilution, net share settlement). Facility proceeds fund general corporate purposes including full redemption of 1,511,372 Series B Preferred shares (all outstanding) at $27.52/share ($25.25 redemption + $2.27 dividends) on May 15, 2026, eliminating ~$3.2M annual dividend burden and simplifying capital structure. Concurrently, Company entered $60M ATM equity program with Citizens JMP (3% commission) under existing S-3 shelf. Transaction replaces higher-cost preferred equity with lower-cost debt, enhances liquidity/flexibility amid ~$30M annualized adjusted EBITDA, positioning for AI platform expansion and organic growth. Song P.C. opined Shares validly issued. Redemption notice issued April 14 via DTC; Nasdaq delisting to follow.