CareCloud Secures Credit Facility on Favorable Terms with Provident Bank to Support Medsphere Acquisition
New Facility Replaces Prior Acquisition-Related Promissory Note Obligation to Wells Fargo; Provides More Favorable Terms and Strengthens Liquidity while Supporting Future Growth
SOMERSET, N.J., Sept. 09, 2025 (GLOBE NEWSWIRE) -- CareCloud, Inc. (NASDAQ:CCLD, CCLDO)) ("CareCloud" or the "Company"), a leader in healthcare technology and AI-powered solutions for hospitals and medical practices nationwide, today announced it has closed a new $10 million credit facility with Provident Bank ("Provident") on September 3, 2025, approximately $8.3 million of which was drawn down at closing to support the recent acquisition of the assets of Medsphere Systems Corporation ("Medsphere"). This is the Company's sole credit facility, and its terms are far more favorable than those of the Wells Fargo promissory note, which was replaced in full by this facility.
"Our new credit facility provides CareCloud with improved flexibility, a lower cost of borrowing, and the financial strength to continue executing on our strategy," said Norm Roth, Interim Chief Financial Officer of CareCloud. "This new facility will further support the recent Medsphere acquisition, which had a total purchase price of $16.5 million, $8.25 million of which we paid at closing from internally-generated cash flow, with the balance now being financed through this facility. We intend to fully pay down the Medsphere-related obligation by the middle of 2026, through internally generated cash flow."
The Provident facility currently bears an interest rate of SOFR plus 3%, which presently equates to less than 7.5%, marking a significant discount to the acquisition-related Wells Fargo promissory note. The facility carries a two-year term.
Additional details regarding the Provident facility are available in CareCloud's Form 8-K, which is being filed today.
About CareCloud
CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com.
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For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud's management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.
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SOURCE: CareCloud
Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
[email protected]
Investor Contact:
Stephen Snyder
Co-Chief Executive Officer
CareCloud, Inc.
[email protected]
