Benzinga | Apr 13, 2021 08:07AM EDT

American Shared Hospital Services Announces $22M Debt Refinancing and New Strategic Banking Relationship with Fifth Third Bank

American Shared Hospital Services (NYSE:AMS) (the "Company"), a leading provider of turnkey technology solutions for stereotactic radiosurgery and advanced radiation therapy equipment and services, today announced the signing of a $22 million credit agreement with Fifth Third Bank, N.A., the principal subsidiary of Fifth Third Bancorp, a diversified bank holding company headquartered in Cincinnati, Ohio, with over $200 billion in assets.

The Company's $22 million credit agreement with Fifth Third Bank, which closed on Friday April 9th, 2021, is composed of three loan facilities. A term loan of $9.5 million will refinance $6.8 million of domestic Gamma Knife debt, $1.6 million will primarily be used for two Gamma Knife reloads with two customers that have recently extended their agreements, and the remaining $1.1 million will be available for future projects. A second term loan of $5.5 million will refinance the Company's PBRT Orlando equipment debt as well as provide additional working capital. Together, these term loans will deliver significant interest expense and principal payment reductions and result in increased cash generation for the Company. The third facility of the credit agreement provides for a $7.0 million revolving line of credit which will be used to increase the Company's flexibility in negotiating future projects and also be available for general corporate purposes.