CareCloud, Inc. closed a $50 million credit facility on April 13 2026 with Citizens Bank, N.A. and Provident Bank, a subsidiary of Provident Financial Services, Inc. The facility, arranged by Citizens Bank, provides non‑dilutive capital that the company can deploy to accelerate growth initiatives without diluting existing shareholders.
On May 15 2026, CareCloud will redeem all 1,511,372 shares of its 8.75 % Series B cumulative redeemable perpetual preferred stock. Each share will be redeemed at $25.25 plus $2.27 in accrued dividends, for a total of $27.52 per share. The redemption eliminates approximately $3.2 million in annual preferred dividend obligations and replaces higher‑cost preferred equity with lower‑cost institutional debt, simplifying the company’s capital structure and improving long‑term financial flexibility.
The $50 million credit line and the preferred‑stock redemption together reduce CareCloud’s financing costs and free up cash flow. The company’s annualized adjusted EBITDA of roughly $30 million provides a solid foundation for servicing the new debt and funding further expansion, particularly in its AI‑centered revenue‑cycle management platform and potential strategic acquisitions.
CareCloud has been actively simplifying its capital structure, having previously converted Series A preferred shares into common stock. The current transaction continues that trend and signals management’s confidence in the company’s cash‑flow generation. The proceeds from the credit facility are earmarked for AI platform development and for pursuing acquisitions that can broaden CareCloud’s market reach and enhance its service portfolio.
Stephen Snyder, CareCloud’s CEO, said, “This transaction represents a transformative step for CareCloud.” He added, “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.”
With the elimination of preferred dividends and the infusion of non‑dilutive capital, CareCloud’s balance sheet is positioned to support continued investment in technology and market expansion while maintaining a strong financial profile.
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