Business
TELA Bio Secures Up to $50 Million in Debt Financing from MidCap Financial
MALVERN, Pa., May 31, 2022 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing
About this update from Tela Bio, Inc.
[{"type":"text","content":"MALVERN, Pa., May 31, 2022 (GLOBE NEWSWIRE) -- TELA Bio, Inc. (\"TELA\") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy, today announced that the Company has entered into a new credit facility with MidCap Financial (“MidCap”), providing TELA with access to up to $50 million in total credit. A portion of the proceeds from the new credit facility were used to fully repay TELA’s existing $30 million credit facility with OrbiMed Royalty Opportunities II, LP, with the remaining proceeds under the credit facility available for working capital needs and other corporate purposes. “We are excited about our new partnership with MidCap which provides TELA with cost-effective funding and financial flexibility. This transaction is reflective of TELA’s strong financial condition and prospects, which enabled us to access the debt capital markets to obtain non-dilutive financing,” said Antony Koblish, president and CEO of TELA Bio. “The proceeds from this loan will allow TELA to fund its current key business objectives and drive future growth initiatives, with minimal further capital required to be raised, if at all.” The MidCap credit facility consists of an initial $40 million tranche received at closing and an additional $10 million tranche that can be drawn at TELA’s option upon satisfaction of certain conditions, including, but not limited to, reaching net revenue thresholds by the end of the 2023 fiscal year. The facility matures on May 1, 2027, and bears interest at a rate equal to 6.25% plus the greater of one-month Term SOFR or 1.0%. The facility provides for at least 36 months of interest only-payments, which can be extended to 48 months upon satisfaction of certain conditions. Additional detail regarding the foregoing financing is set forth in TELA’s Current Report on Form 8-K, filed today with the U.S. Securities and Exchange Commission. About TELA Bio, Inc. TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on providing innovative technologies that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy. The Company is committed to providing surgeons with ad...