Establishment Labs Enters Into $225 Million Credit Facility With Oaktree
- Senior secured term loan of up to
- Facility provides non-dilutive capital to fund
“After a competitive process, we could not be more pleased to enter into this long-term strategic partnership with Oaktree,” said Raj Denhoy, Chief Financial Officer of
“Establishment Labs has grown tremendously since the company’s founding over a decade ago and has cemented its position as a leader in the women’s health space, with a deep focus on breast aesthetics and reconstruction,” said
The term loan facility will be available to
A senior secured term loan of up to
$225 million. The facility will mature in five years from funding and is interest-only through to maturity. Proceeds received from the first tranche of the facility will be used to retire the company’s current term loan, to fund construction of the new Sulàyöm Innovation Campus in Costa Rica, and for general corporate purposes and working capital.
Interest will accrue at a fixed rate of 9.00% per annum and will step down to 8.25% upon the funding conditions for the fourth tranche being met.
Establishment Labscan elect to PIK up to two-thirds of cash interest payments for the first 24 months of the loan term, resulting in a minimum initial cash interest rate of 3.00%.
The first tranche (Tranche A) of
$150 millionwill be drawn immediately, with the remaining three tranches of $25 millioneach available upon the achievement of certain commercial and regulatory milestones:
Tranche B of
$25 millionavailable before September 30, 2023, and upon trailing twelve-month product net sales exceeding $145 million
Tranche C of
$25 millionavailable before March 31, 2024, and upon either trailing twelve-month product net sales exceeding $185 millionor upon FDA approval of certain Motiva implants for use in the U.S., whichever is achieved earlier
Tranche D of
$25 millionavailable before December 31, 2024, and upon both trailing twelve-month product net sales exceeding $225 millionand FDA approval of certain Motiva implants for use in the U.S.
- Tranche B of
A Form 8-K outlining the full terms of the credit facility will be filed with the
Cowen acted as exclusive financial advisor to
Oaktree is a leader among global investment managers specializing in alternative investments, with
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