CareCloud Secures $50 Million Credit Facility and Announces Series B Preferred Stock Redemption
April 14, 2026 - CareCloud, Inc. (Nasdaq: CCLD, CCLDO), a prominent player in AI-driven healthcare technology and revenue cycle management solutions, has made significant strides in its financial strategy with the announcement of a $50 million credit facility and the impending full redemption of its Series B Preferred Stock. This move is poised to enhance the company's financial flexibility and strengthen its capital structure.
1. $50 Million Credit Facility Details
On April 13, 2026, CareCloud successfully closed a $50 million credit facility with Citizens Bank, N.A. and Provident Bank, a subsidiary of Provident Financial Services, Inc. Citizens acted as the lead arranger and administrative agent for this facility, with Provident Bank participating in the financing. This credit arrangement is a strategic component of CareCloud's ongoing transformation strategy and reflects its commitment to optimizing its capital structure.
Stephen Snyder, CEO of CareCloud, remarked on the importance of this transaction, stating, “This transaction represents a transformative step for CareCloud. With the full redemption of the Series B Preferred Stock, we are simplifying our capital structure and positioning the Company for its next phase of growth.” The facility not only provides non-dilutive capital but also enhances liquidity and lowers the cost of capital, reinforcing the company's operational resilience.
2. Redemption of Series B Preferred Stock
Alongside the credit facility, CareCloud announced that it will redeem 100% of its outstanding Series B Cumulative Redeemable Perpetual Preferred Stock on May 15, 2026. This redemption involves 1,511,372 shares, which will be redeemed at a price of $25.25 per share, plus accumulated unpaid dividends totaling $2.27, bringing the total redemption price to $27.52 per share.
The move to redeem the Series B Preferred Stock is significant as it will eliminate approximately $3.2 million in annual preferred dividend obligations. By replacing higher-cost preferred equity with lower-cost institutional debt, CareCloud aims to enhance its long-term shareholder value. The company will also delist the Series B Preferred Stock from the Nasdaq Global Stock Market following the redemption.
3. Financial Overview and Future Growth
CareCloud currently generates about $30 million in annualized adjusted EBITDA, illustrating the robustness of its operating model. The recent financing initiatives are expected to bolster the company's efforts to expand its AI-driven platform and enhance efficiency across healthcare operations. This strategic evolution aims to accelerate growth and improve long-term shareholder value.
Matthew Rickert, Market Executive at Citizens, expressed satisfaction with the partnership, stating, “We are pleased to have partnered closely with the Company to optimize its capital structure and strategically position CareCloud for sustained growth and enhanced profitability.”
With its capital structure simplified, CareCloud is poised to leverage its newly strengthened balance sheet to further enhance its AI-enabled product offerings and drive organic growth in its core revenue cycle management platform.
4. Conclusion
CareCloud’s recent financial maneuvers, including securing a $50 million credit facility and redeeming its Series B Preferred Stock, mark a pivotal moment for the company. By simplifying its capital structure and enhancing its financial flexibility, CareCloud is strategically positioned to pursue its next phase of growth, focusing on innovation in healthcare technology and improved operational performance. As it continues to evolve, CareCloud remains committed to providing its clients with advanced solutions designed to improve patient care while reducing administrative burdens and operating costs.
