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.”
