Mr. Puneet Khanna reports

CARERX CORPORATION ANNOUNCES $70 MILLION DEBT REFINANCING

CareRx Corp. has entered into a binding commitment for a comprehensive refinancing transaction with a syndicate of lenders led by a Canadian Schedule I chartered bank and arranged and managed by Crown Private Credit Partners Inc.

"Crown Private Credit has been an extremely valued partner and we are excited to advance our relationship with this refinancing," said Puneet Khanna, president and chief executive officer of CareRx. "This refinancing represents a major milestone for the company as we continue to strengthen our balance sheet, lower our overall cost of capital and improve our cash generation in order to better position the company to capitalize on future growth and margin-expansion opportunities."

Under the terms of the refinancing:

• The lenders will provide a $20-million senior secured revolving operating loan and a $50-million senior secured term loan.
• The company intends to use the proceeds of the credit facilities, plus available cash on hand, to repay $78-million of existing debt, including its existing $58-million term loan with Crown Private Credit and $20-million of subordinated debt.
• A portion of the operating loan and $47 million of the term loan will initially be drawn at closing, with future draws on the term loan available to finance certain capital expenditures.
• The credit facilities have a five-year term, with a floating interest rate that will initially accrue at the rate of prime plus 2.75 per cent at closing, with downward adjustments to as low as prime plus 2 per cent as the company's net senior debt to trailing 12-month EBITDA (earnings before interest, taxes, depreciation and amortization) declines.
• Compared with its existing term loan and subordinated debt, the company expects to initially save up to $1-million annually in interest charges.

"Expanding our relationship with supportive lenders, including Crown Private Credit and a Canadian bank, is an important step in our evolution as Canada's largest provider of pharmacy services to seniors living communities," added Andrew Mok, chief financial officer of CareRx. "As a result of the refinancing, the company will benefit from a more simplified and strengthened capital structure, a unified syndicate of lenders, and, importantly, the addition of a revolving operating loan which will allow the company to utilize its cash on hand to reduce the company's debt servicing costs and provide it with significantly greater financial flexibility."

The refinancing is subject to customary closing conditions and is anticipated to close on or before Dec. 31, 2023. However, there is no guarantee that closing will occur on such timeline, if at all.

About CareRx Corp.

CareRx is Canada's leading provider of pharmacy services to seniors living communities. It serves approximately 94,000 residents in over 1,500 seniors and other congregate care communities (long-term care homes, retirement homes, assisted living facilities and group homes). CareRx is a national organization with a large network of pharmacy fulfilment centres strategically located across the country. This allows the company to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. The company uses best-in-class technology that automates the preparation and verification of multidose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimes. CareRx takes an active role in working with its home operator partners to promote resident health, staff education, and medication system quality and efficiency.

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