CareCloud Simplifies Capital Structure with $50M Facility, Reaffirms Guidance
CareCloud secured a $50M credit facility and redeemed all Series B Preferred shares to simplify its capital structure and reaffirm guidance. Since its November 2015 preferred raise, revenue rose from $23M to $130M and annualized adjusted EBITDA swung from a $0.7M loss to $30M.
1. Credit Facility and Preferred Redemption
CareCloud closed a $50 million credit facility and redeemed all Series B Preferred shares to streamline its capital structure, eliminate preferred dividends and enhance liquidity.
2. Decade-Long Financial Transformation
Since its first preferred capital raise in November 2015, the company’s revenue rose from $23 million to $130 million and annualized adjusted EBITDA swung from a $0.7 million loss to $30 million, reflecting disciplined growth.
3. Reaffirmed Guidance and Growth Outlook
With simplified financing and a stronger leverage position, CareCloud reaffirmed its existing full-year financial guidance and highlighted plans for continued investment in AI-driven healthcare and revenue cycle management solutions.
4. Board Rejection of Acquisition Offer
In 2024, CareCloud’s board declined an unsolicited non-binding $5 per share acquisition proposal, citing insufficient value for both common and preferred shareholders and expressing confidence in the company’s strategic trajectory.