AxoGen, Inc. Announces the Refinancing of its Debt Facility
October 26 2016 - 07:00AM
AxoGen, Inc. (NASDAQ:AXGN), a global leader in developing and
marketing innovative surgical solutions for peripheral nerve
injuries, today announced that it has completed the refinancing of
its existing debt agreement with a new facility from MidCap
Financial (“MidCap”). The new facility consists of a $21.0
million term loan and a $10.0 million revolving line of credit, of
which $4.0 million has been drawn. AxoGen continues to have a
total debt balance of $25 million after closing. The
revolving line of credit may be increased up to $15 million at a
later date at the Company’s request and with approval of Midcap.
“We are pleased to announce this debt financing
with MidCap, a leading financing partner in the healthcare space,”
commented Peter J. Mariani, AxoGen’s Chief Financial Officer.
“Following our recent equity raise of $18.6 million, this new and
lower cost debt facility further strengthens our balance sheet as
we continue to drive growth in this emerging peripheral nerve
repair market.”
The facility carries a 54-month term with
interest only payments on the term loan for the first 24
months. The interest rate on the term loan is 8.0% plus the
greater of LIBOR or 0.5%, which at the closing resulted in a rate
of 8.5%. Borrowings under the revolving line of credit bear
interest of 4.5% plus the greater of LIBOR or 0.5% which, at the
closing resulted in a rate of 5.0%. The company estimates
annual interest cost savings of the new facility will be at least
$1.5 million compared to the previous debt facility. The
facility requires the company to maintain certain minimum net
revenue requirements.
Proceeds from this financing were used to repay
and retire the company’s existing $25.0 million term loan and
revenue royalty interest agreement with Three Peaks Capital
S.a.r.l, an indirect wholly-owned subsidiary of Oberland Capital
Healthcare Master Fund, LP.
Additional details regarding this financing will
be available in the Company’s Current Report on Form 8-k to be
filed with the Securities and Exchange Commission.
Credo180, LLC served as financial advisor to
AxoGen for this transaction.
About AxoGen AxoGen (AXGN) is a
global leader in innovative surgical solutions for peripheral nerve
injuries. AxoGen’s portfolio of products includes Avance® Nerve
Graft, an off-the-shelf processed human nerve allograft for
bridging severed nerves without the comorbidities associated with a
second surgical site, AxoGuard® Nerve Connector, a porcine
submucosa extracellular matrix ("ECM") coaptation aid for
tensionless repair of severed nerves, and AxoGuard® Nerve
Protector, a porcine submucosa ECM product used to wrap and protect
injured peripheral nerves and reinforce the nerve reconstruction
while preventing soft tissue attachments. Along with these core
surgical products, AxoGen also offers AxoTouch™ Two-Point
Discriminator and AcroVal™ Neurosensory & Motor Testing System.
These evaluation and measurement tools assist healthcare
professionals in detecting changes in sensation, assessing return
of sensory, grip and pinch function, evaluating effective treatment
interventions, and providing feedback to patients on nerve
function. The AxoGen portfolio of products is available in the
United States, Canada, the United Kingdom and several European and
international countries.
About MidCap FinancialMidCap
Financial is a middle market-focused, specialty finance firm that
provides senior debt solutions to businesses across all industries.
The firm’s years of experience, strong balance sheet, and
flexibility make it a lender of choice for companies across all
stages of growth and complexity. MidCap Financial’s debt solutions
focus in five areas:
- General and Healthcare Asset-Based working capital loans
collateralized by third-party accounts receivable and other
assets;
- Leveraged loans to companies backed by private equity
sponsors;
- Life Sciences loans to VC-backed and public pharmaceutical,
biotech, and medical device companies;
- Real Estate loans on all types of commercial properties,
medical office buildings, various types of senior housing and
skilled nursing properties; and
- Lender Finance term loans or revolvers provided across the
consumer and commercial finance sectors.
Additional information about MidCap Financial
can be found at www.midcapfinancial.com
Cautionary Statements Concerning Forward-Looking
StatementsThis Press Release contains "forward-looking" statements
as defined in the Private Securities Litigation Reform Act of 1995.
These statements are based on management's current expectations or
predictions of future conditions, events or results based on
various assumptions and management's estimates of trends and
economic factors in the markets in which we are active, as well as
our business plans. Words such as "expects", "anticipates",
"intends", "plans", "believes", "seeks", "estimates", "projects",
"forecasts", "continue", "may", "should", "will" variations of such
words and similar expressions are intended to identify such
forward-looking statements. The forward-looking statements may
include, without limitation, statements regarding our growth, our
2016 guidance, product development, product potential, financial
performance, sales growth, product adoption, market awareness of
our products, data validation, our visibility at and sponsorship of
conferences and educational events. The forward-looking statements
are subject to risks and uncertainties, which may cause results to
differ materially from those set forth in the statements.
Forward-looking statements in this release should be evaluated
together with the many uncertainties that affect AxoGen's business
and its market, particularly those discussed in the risk factors
and cautionary statements in AxoGen's filings with the Securities
and Exchange Commission. Forward-looking statements are not
guarantees of future performance, and actual results may differ
materially from those projected. The forward-looking statements are
representative only as of the date they are made, and, except as
required by law, AxoGen assumes no responsibility to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contacts:AxoGen, Inc.Peter J.
Mariani, Chief Financial OfficerInvestorRelations@AxoGenInc.com
The Trout Group – Investor
Relations
Brian Korb 646.378.2923bkorb@troutgroup.com
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