07 May Xtant Medical Announces $20 Million Debt Financing with MidCap Financial
BELGRADE, Mont., May 06, 2021 (GLOBE NEWSWIRE) — Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal disorders, today announced that the Company and its subsidiaries have entered into credit agreements with MidCap Financial Trust (“MidCap”). The credit agreements provide for a $12 million secured term loan at a per annum interest rate of 7.00%, plus one-month LIBOR, and an $8 million secured revolving credit facility at a per annum interest rate of 4.50%, plus one-month LIBOR. Both facilities have a five-year term.
These new credit agreements replace the Company’s second amended and restated credit agreement, as subsequently amended, with OrbiMed Royalty Opportunities II, LP as lender (in such capacity, “OrbiMed”). The indebtedness incurred, and all other other obligations of the Company and its subsidiaries owed, under the credit agreement provided by OrbiMed were repaid in full and terminated using proceeds of loans received under the credit agreements with MidCap. Following such repayment to OrbiMed, additional availability under the revolving credit facility with MidCap is available for working capital needs and other corporate purposes.
“We are pleased to have entered into these new debt facilities with MidCap, which right-sizes our total indebtedness, enhances our balance sheet, and allows our continued focus on our strategic growth initiatives,” said Sean Browne, President and CEO of Xtant Medical. “We are grateful for the long-time support of our former lender, OrbiMed, and in particular their support to reduce and restructure our indebtedness.”
About Xtant Medical Holdings, Inc.
Xtant Medical Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development, and commercialization of a comprehensive portfolio of orthobiologics and spinal implant systems to facilitate spinal fusion in complex spine, deformity and degenerative procedures. Xtant people are dedicated and talented, operating with the highest integrity to serve our customers.
The symbols ™ and ® denote trademarks and registered trademarks of Xtant Medical Holdings, Inc. or its affiliates, registered as indicated in the United States, and in other countries. All other trademarks and trade names referred to in this release are the property of their respective owners.
About MidCap Financial
MidCap Financial is a middle market focused specialty finance firm that was formed in 2008. As of December 31, 2020, MidCap Financial, and its subsidiaries, provides management or other services for over $29.8 billion of commitments, of which $5 billion is managed by MidCap Financial Services Capital Management, LLC, our registered investment advisor.
MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, Inc. pursuant to an investment management agreement. Apollo Global Management, Inc. is one of the world’s largest asset managers with approximately $455.0 billion of assets under management as of December 31, 2020. Loans made or arranged pursuant to a California Finance Lenders Law license.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “believes,” “continue,” “future,” “will,” “may,” “continue,” similar expressions or the negative thereof, and the use of future dates. Forward-looking statements in this release include the Company’s ability to continue to focus on its strategic growth initiatives. The Company cautions that its forward-looking statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others: the Company’s future operating results and financial performance; the ability to increase or maintain revenue; the ability to remain competitive; the ability to innovate and develop new products; the ability to engage and retain qualified personnel; the effect of the COVID-19 pandemic on the Company’s business, operating results and financial condition; government and third-party coverage and reimbursement for Company products; the ability to obtain and maintain regulatory approvals and comply with government regulations; the effect of product liability claims and other litigation to which the Company may be subject; the effect of product recalls and defects; the ability to obtain and protect Company intellectual property and proprietary rights and operate without infringing the rights of others; the ability to service Company debt, comply with its debt covenants and access additional indebtedness; the ability to obtain additional financing on favorable terms or at all; and other factors. Additional risk factors are contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (SEC) on February 24, 2021 and subsequent SEC filings by the Company. Investors are encouraged to read the Company’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement.
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SOURCE: Globe Newswire, 6th May 2021