JPMorgan Provides $15MM Revolver Access to Inogen
Inogen entered into a primary banking relationship with JPMorgan Chase to receive credit and treasury services.
As a result of this relationship, Inogen will now have access to a $15 million working capital revolving line of credit as well as treasury and cash management services through JPMorgan Chase’s Commercial Bank. This three-year working capital line of credit replaces the company’s existing loan facility, which had a balance outstanding of $13.4 million as of June 30, 2014. Inogen paid off its existing debt balances in August 2014.
In addition to providing substantially improved flexibility to draw capital as needed, this facility will reduce interest expense on debt balances to LIBOR plus 1.25% from LIBOR plus 3.25% to 3.5%. JPMorgan Chase led Inogen’s IPO in February 2014.
“We are pleased to strengthen our relationship with JPMorgan Chase,” said Ali Bauerlein, CFO of Inogen. “The very competitive LIBOR rates and the flexibility that the new banking structure gives Inogen combined with the execution JPMorgan Chase has demonstrated, makes the overall offering best in class.”
“This new relationship illustrates the convenience and flexibility of working with a global firm for multiple financial services needs,” said Robert Lagace, head of the JPMorgan Chase Commercial Bank in Greater Los Angeles. “Partnering with JPMorgan Chase provides our clients with a broad range of unique capabilities. We work across business lines to generate ideas, deliver solutions and provide capital to help our clients grow and succeed. With our growing Commercial Banking presence in the Central Coast, we are delighted to be working with Inogen and its dynamic leadership team. We are committed to supporting the success of the company’s products and its growth as a firm.”
Inogen is a medical technology company that develops, manufactures and markets innovative oxygen concentrators used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions.