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Apyx Medical Corporation Announces New Five-Year Credit Agreement with MidCap Financial
Facility includes a senior, secured term loan of up to $25 million and a revolving line of credit of up to $10 million CLEARWATER, Fla.--(BUSINESS WIRE)--
About this update from Apyx Medical Corporation
[{"type":"text","content":"\nFacility includes a senior, secured term loan of up to $25 million and a revolving line of credit of up to $10 million\n\n CLEARWATER, Fla.--(BUSINESS WIRE)--\nApyx Medical Corporation (NASDAQ:APYX) (the “Company”), the manufacturer of a proprietary helium plasma and radiofrequency technology marketed and sold as Renuvion®, today announced that the Company and its subsidiaries have entered into a new, five-year secured credit facility with MidCap Financial. The credit agreement provides for an up to $35 million facility consisting of senior, secured term loans (“Term Loans”) of up to $25 million and a revolving facility (“Revolver”) of up to $10 million.\n\n“We are pleased to secure this financing, which strengthens our balance sheet and enhances our financial flexibility,” said Charlie Goodwin, President and Chief Executive Officer. “This new credit agreement provides net proceeds of approximately $8.0 million at closing and available revolver borrowings of up to $5 million which, along with our cash and equivalents at year-end and the cash tax refunds of at least $7.5 million we expect to receive this year, we believe secures the requisite capital to fund our strategic growth initiatives to achieve our goal of generating sustainable profitability and strong free cash flow generation in the future.”\n\nThe MidCap Financial credit facility matures on February 1, 2028 and includes Term Loan of an initial $10 million tranche received at closing and additional tranches of $5 million and $10 million that can be drawn at the Company’s option upon satisfaction of certain conditions and covenants, including, but not limited to, reaching certain net revenue thresholds by December 31, 2023 and September 30, 2024, respectively. The Term Loan provides for at least 24 months of interest-only payments, which can be extended to 36 months upon satisfaction of certain conditions. Availability to draw on the five-year, $10 million revolving credit facility is based primarily on the Company’s inventory and receivable balances. The credit facility bears interest at an annual rate equal to the Adjusted Term SOFR, subject to a floor of 2.50%, plus (i) 7.35% for the Term Loan and (ii) 4.00% for the Revolver. “Adjusted Term SOFR” means the per annum rate equal to the sum of the 30-day forward-looking secured overnight financing rate, as published by...