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Xtant Medical Announces Amendments and Extension of Credit Facility
“We appreciate OrbiMed’s ongoing support as evidenced by their willingness to commit additional capital and modify the terms of our credit facility,” said
The Second Amended and Restated Credit Agreement provides for the following, as further described in the agreement:
$10.0 milliondelayed draw term loan, which draws are subject to certain terms and conditions;
- Extension of the credit facility maturity date from
July 31, 2020to March 31, 2021;
- Extension of the period during which no interest accrues from
December 31, 2018until March 31, 2020;
- Elimination of the Minimum Consolidated EBITDA and Consolidated Senior Leverage Ratio Covenants; and
- Addition of a Minimum Revenue Covenant.
Xtant will issue warrants for 1.2 million shares of common stock with an exercise price of $0.01 per share and an expiration date of April 1, 2029. The warrants will be issued to OrbiMed Royalty Opportunities II, LP and ROS Acquisition Offshore LP who collectively own approximately 70% of Xtant’s outstanding common stock and are the sole holders of the Company’s outstanding long-term debt under the credit facility.
Additional details regarding the Second Amended and Restated Credit Agreement and the warrant issuance can be found in an Annual Report on Form 10-K to be filed by Xtant later today with the Securities and Exchange Commission (
About Xtant Medical
Important Cautions 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,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’ “continue,” “future,” ‘‘will,’’ “potential” similar expressions or the negative thereof, and the use of future dates. 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 effect of recent management changes and the ability to engage and retain qualified personnel; 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; timing and results of clinical studies; 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 and comply with debt covenants; the ability to raise additional financing and other factors. Additional risk factors are contained in the Company’s Annual Report on Form 10-K for the year ended
Investor Relations Contact
Lazar Partners Ltd.
Source: Xtant Medical, Inc.