CareCloud Redeems 8.75% Series B Preferred Stock Using $50M Bank Facility
CareCloud completed full redemption of its 8.75% Series B Preferred Stock with a $50 million credit facility led by Citizens Bank, replacing higher-cost equity with institutional financing. The company forecasts $130 million revenue and $30 million EBITDA in 2026 and retains a $60 million ATM facility for growth funding at or above $5 per share.
1. Series B Preferred Stock Redemption
CareCloud completed full redemption of its outstanding 8.75% Series B Preferred Stock, funded by a $50 million credit facility led by Citizens Bank with participation from Provident Bank. This move replaces higher-cost preferred equity with lower-cost institutional financing, simplifying the capital structure and reducing dividend obligations.
2. Historical Growth and Financial Milestones
Since 2015, revenue has grown from $23 million to an expected $130 million in 2026, supported by over 20 acquisitions and expansion to more than 45,000 healthcare providers. The company achieved its first full year of positive GAAP net income in 2025 and projects approximately $30 million in adjusted EBITDA for 2026.
3. ATM Facility and Future Growth Strategy
CareCloud maintains a $60 million At-The-Market equity facility, which management intends to use opportunistically at or above $5 per share. The ATM provides capital-efficient funding to support AI-driven margin expansion and strategic growth initiatives without necessitating mandatory equity issuance.