$35 million funded at near refinance present debt, prolong maturity and decrease curiosity expenseFurther borrowing capability supplies minimally dilutive development capital and strategic flexibility
AUSTIN, TX / ACCESSWIRE / December 21, 2021 / Apollo Endosurgery, Inc. (“Apollo”) (NASDAQ:APEN), a worldwide chief in much less invasive medical gadgets for gastrointestinal and bariatric procedures, at this time introduced that it has entered right into a debt financing settlement with an affiliate of Innovatus Capital Companions, LLC (“Innovatus”) to supply Apollo with as much as $100 million in time period mortgage financing.
“We’re happy to accomplice with a long-term strategic investor similar to Innovatus on this transaction,” stated Chas McKhann, president and CEO. “This new mortgage facility supplies us flexibility to put money into our enterprise and fund our development initiatives via minimally-dilutive financing. Importantly, with this extra capital supply, our administration crew can deal with unlocking the worth in our enterprise via continued execution.”
The brand new time period mortgage reduces Apollo’s price of capital, extends amortization by a further 33 months over the prior time period mortgage and reduces debt service money necessities by practically $30 million over the following three years.
“Innovatus is worked up to work with Apollo and its administration crew,” stated Claes Ekstrom, Managing Director. “We imagine this transaction allows Apollo to speed up the adoption of its portfolio of extremely differentiated merchandise throughout a variety of affected person wants.”
On December 21, 2021, Apollo entered right into a mortgage and safety settlement (the “Mortgage Settlement”) pursuant to which Innovatus has agreed to make sure time period loans within the mixture principal quantity of as much as $100 million, with the primary $35 million tranche (Time period A Tranche) to be funded at closing and used to retire Apollo’s present time period debt facility with SLR Capital Companions.
Apollo can be eligible to attract on extra tranches commencing June 30, 2022 as follows:
Time period B Tranche of $15 million between July 1, 2023 and December 31, 2023, upon achievement of sure income milestones;Time period C Tranche of $25 million between July 1, 2024 and December 31, 2024, upon achievement of sure income milestones; andTerm D Tranche of as much as $25 million second between June 30, 2022 and June 30, 2024, for the needs of financing all or a part of any authorised acquisition.
Borrowing underneath the Mortgage Settlement will bear curiosity on the higher of the Wall Avenue Journal Prime Fee or 3.25%, plus 4.0% (at present, 7.25%). Apollo is entitled to make interest-only funds for 60 months, adopted by month-to-month funds of principal and curiosity via maturity on the sixth anniversary of the preliminary funding date.
The Mortgage Settlement is secured by considerably all of Apollo’s property.
Previous to December 21, 2025, Innovatus could have the proper, however not the duty, to make a one-time election to transform as much as 10% of the excellent mixture principal quantity of the time period Loans into shares of widespread inventory of Apollo. Such shares shall be issued at a worth per share equal to $11.50.
Credo 180 acted as sole monetary advisor to Apollo on this transaction.
Further particulars relating to the financing can be included in a Present Report on Type 8-Okay, which Apollo will file with the Securities and Trade Fee inside 4 enterprise days of the date of this press launch.
About Apollo Endosurgery, Inc.
Apollo Endosurgery, Inc. is a medical expertise firm targeted on growth of next-generation, much less invasive gadgets to advance therapeutic endoscopy designed to deal with a wide range of gastrointestinal situations together with closure of gastrointestinal defects, managing gastrointestinal issues and the remedy of weight problems. Apollo’s device-based therapies are an alternative choice to invasive surgical procedures, thus decreasing complication charges and lowering whole healthcare prices. Apollo’s merchandise are provided in over 75 international locations at this time and embrace the OverStitch® Endoscopic Suturing System, the OverStitch Sx® Endoscopic Suturing System, X-Tack® Endoscopic HeliX Tacking System and the ORBERA® Intragastric Balloon.
Apollo’s widespread inventory is traded on the Nasdaq World Market underneath the image “APEN”. For extra data relating to Apollo Endosurgery, go to: http://www.apolloendo.com/.
About Innovatus Capital Companions, LLC
Innovatus Capital Companions, LLC, is an unbiased adviser and portfolio administration agency with roughly $1.5B in property underneath administration. Innovatus adheres to an funding technique that identifies disruptive and development alternatives throughout a number of asset classes with a unifying theme of capital preservation, revenue technology, and upside optionality. The agency has a devoted crew of life sciences funding professionals with deep expertise in healthcare, together with life sciences. Innovatus and its principals have important expertise offering debt financing to medical machine, diagnostics, and biotechnology corporations that handle unmet medical wants, enhance affected person outcomes, and scale back total healthcare expenditures. Additional data could be discovered at www.innovatuscp.com.
Cautionary Be aware on Ahead-Wanting Statements
Sure statements on this press launch, similar to future market adoption of Apollo’s merchandise and Apollo’s means to execute on development initiatives, are forward-looking statements which are topic to dangers and uncertainties that might trigger outcomes to be materially totally different than expectations. As well as, there may be uncertainty in regards to the unfold of the COVID-19 virus and the affect it could have on Apollo’s operations, Apollo’s monetary outlook for future durations, the demand for Apollo’s merchandise, Apollo’s liquidity place, international provide chains and financial exercise typically. Vital elements that might trigger precise outcomes to vary materially embrace: experiences of adversarial occasions associated to our merchandise, outcomes of scientific research associated to our merchandise, growth of aggressive medical merchandise by opponents, regulatory approvals and in depth regulatory oversight by the FDA or different regulatory authorities, unfavorable media protection associated to our merchandise or associated procedures, protection and reimbursement selections by personal or authorities payors, Apollo’s means to assist the adoption of its merchandise and broaden its product portfolio; the potential measurement of Apollo’s addressable markets; the execution of our gross margin enchancment initiatives; and the supply of money for Apollo’s future operations in addition to different elements detailed in Apollo’s periodic experiences filed with the Securities and Trade Fee, or SEC, together with its Annual Report on Type 10-Okay for the yr ended December 31, 2020 and its Quarterly Report on Type 10-Q for the quarterly interval ended September 30, 2021. Copies of experiences filed with the SEC are posted on Apollo’s web site and can be found from Apollo with out cost. These forward-looking statements usually are not ensures of future efficiency and converse solely as of the date hereof, and, besides as required by regulation, Apollo disclaims any obligation to replace these forward-looking statements to mirror future occasions or circumstances.
Apollo makes use of the investor relations part of its web site as a method of complying with its disclosure obligations underneath Regulation FD. Accordingly, we suggest that buyers monitor Apollo’s investor relations web site along with following Apollo’s press releases, SEC filings, and public convention calls and webcasts.
Apollo Endosurgery, Inc.
Darrow Associates Investor Relations
Matt Kreps, 214-597-8200
SOURCE: Apollo Endosurgery, Inc.
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