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Get filing alertsSensus Healthcare secures $15M credit facility with restrictive covenants, blanket lien
Filed June 5, 2026 · Period ending June 2, 2026 · ~1 min read
Key Changes
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high
Company obtained $15M revolving credit line from City National Bank at SOFR+3%, maturing June 2027, replacing prior Fifth Third facility. Loan secured by $2.23M cash collateral plus blanket lien on all company assets.
Item 1.01 verify on EDGAR → -
high
New facility requires bank approval to sell assets outside ordinary business, incur additional debt, create new liens, or remove CEO, President, or CFO—significantly limiting management's strategic flexibility.
Item 1.01: Loan Agreement verify on EDGAR → -
medium
Company must maintain debt service coverage ratio of at least 1.50x, meaning cash flow must exceed debt payments by 50%. Breach could trigger default and loan acceleration.
Item 1.01: Financial Covenant verify on EDGAR → -
high
Comprehensive security package includes $2.23M in pledged cash and security interest in all company assets, indicating lender requires substantial protection and potentially constraining future financing options.
Item 1.01: Security Agreements verify on EDGAR →
Summary
Sensus Healthcare refinanced its revolving credit facility, replacing Fifth Third Bank with City National Bank as its lender. The new $15 million facility carries an interest rate of SOFR plus 3% and matures in one year (June 2027).
While the facility provides working capital flexibility, the terms reveal tight lender oversight: the company pledged $2.23 million in cash collateral and granted a blanket lien on all assets. The loan agreement imposes significant operational restrictions that retail investors should understand.
Management cannot sell material assets, take on new debt, create additional liens, or remove key executives (CEO, President, CFO) without bank approval. The company must also maintain a 1.50x debt service coverage ratio, meaning operating cash flow must consistently exceed debt payments by 50%. Investors should monitor quarterly filings for compliance with the debt service coverage covenant and watch for any requests to amend the facility terms, which could signal financial stress. The restrictive covenants may limit the company's ability to pursue acquisitions or strategic initiatives without lender consent.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
Pursuant to a Pledged Collateral and Restricted Account Agreement, dated June 2, 2026 (the “Pledged Collateral Agreement”), between the Company and CNB, the Loan is secured by cash collateral in the amount of $2,230,000, and pursuant to a Security Agreement, dated June 2, 2026 (the “Security Agreement”), between the Company and CNB, the Loan is secured by a security interest in all of the Company’s assets (the “Collateral”).
The credit facility is secured by $2.23 million in cash collateral plus a blanket lien on all company assets. This comprehensive security package indicates the lender requires substantial protection, which may limit the Company's financial flexibility.
Added in current filing · verify on EDGAR →
Under the Loan Agreement, the Company must obtain CNB’s prior written consent in order to take any of the following actions: (a) sell or transfer any of the Company’s assets outside the ordinary course of its business; (b) incur, create, assume, or permit to exist any other indebtedness (subject to certain exceptions); (c) encumber any of the Company’s assets with any liens other than liens in favor of CNB and certain other permitted liens, or (d) remove the Company’s current Chief Executive Officer, President or Chief Financial Officer.
The loan agreement imposes significant operational restrictions requiring bank consent for asset sales outside ordinary course, additional debt, new liens, and removal of key executives (CEO, President, or CFO). These covenants substantially limit management's strategic flexibility.
Added in current filing · verify on EDGAR →
As previously reported, the Company’s previous revolving credit facility, made available to the Company by Fifth Third Bank, N.A., as successor to Comerica Bank, has been terminated.
The Company terminated its previous revolving credit facility with Fifth Third Bank and replaced it with the new City National Bank facility. This represents a complete refinancing of the Company's revolving credit arrangements.
Event · Item 9.01 — Financial Statements and Exhibits
Sensus Healthcare entered into a new revolving credit facility with CNB on June 2, 2026.
Added in current filing · verify on EDGAR →
Loan Agreement, dated as of June 2, 2026, by and between the Company and CNB
The company entered into a Loan Agreement with CNB on June 2, 2026. This establishes a new credit facility, evidenced by a Revolving Promissory Note. The facility is secured by pledged collateral and a security agreement covering company assets.
Added in current filing · verify on EDGAR →
Pledged Collateral and Restricted Account Agreement, dated as of June 2, 2026, by and between the Company and CNB
The company pledged collateral and established a restricted account as part of the credit facility. This indicates the loan is secured, which may limit the company's financial flexibility but typically results in more favorable borrowing terms.
Added in current filing · verify on EDGAR →
Security Agreement, dated as of June 2, 2026, by and between the Company and CNB
The company granted CNB a security interest in company assets through a Security Agreement. This gives the lender rights to company assets in the event of default, representing a material encumbrance on the company's property.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 5, 2026 · How we verify