NEW YORK - Establishment Labs Holdings Inc . (NASDAQ: NASDAQ:ESTA), a medical technology company specializing in women's health, particularly breast aesthetics and reconstruction, has announced an amendment to its $225M term loan agreement with Oaktree Capital Management, L.P. The amendment pertains to additional capital access to support the anticipated U.S. launch of the company's Motiva Implants®.
Under the revised terms, the two initial tranches totaling $175M remain unchanged. The subsequent tranches, C and D, have been modified to provide $25M each, subject to certain conditions. Tranche C is accessible before December 31, 2024, contingent upon the U.S. FDA's approval of Motiva Implants®. Tranche D, also $25M, will be available before June 30, 2025, provided Tranche C is drawn and the company's trailing twelve-month sales surpass $195M. Both tranches will accrue interest at a fixed rate of 10.0% per annum.
Juan José Chacón-Quirós, CEO and Founder of Establishment Labs, emphasized the importance of the amended facility in ensuring a successful U.S. launch of Motiva Implants. He stated that despite the additional capital, the company aims to achieve EBITDA positivity in 2024 and cash flow positivity by 2025, with the U.S. market entry timeline remaining on course.
Aman Kumar, Co-Portfolio Manager of Life Sciences Lending at Oaktree, highlighted Establishment Labs' progress and expressed enthusiasm for the upcoming U.S. introduction of Motiva Implants, indicating Oaktree's continued support for the company's endeavors.
The full terms of the credit facility will be detailed in a Form 8-K to be filed with the Securities and Exchange Commission.
Establishment Labs has delivered over three million Motiva® devices globally since 2010 and is known for its portfolio of Femtech solutions. Its Motiva Flora® tissue expander and Mia Femtech™ are part of its innovative offerings. The company has a strong patent portfolio and is supported by scientific research and publications.
The information in this article is based on a press release statement from Establishment Labs Holdings Inc. It should be noted that the company's Motiva silicone gel-filled implants are currently not approved for commercial distribution in the United States and are undergoing clinical investigation.
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