Oxford Finance Provides $275MM Senior Secured Term Loan to Orthofix

Orthofix Medical, a global medical technology company, entered into a new credit agreement providing the company with up to $275 million in a senior secured term loan with a 48-month interest only period. The term loan is agented by Oxford Finance and provides non-dilutive capital and financial flexibility to support Orthofix’s continued focus on profitable growth._x000D_
_x000D_
The proceeds from the initial funding of the term loan will be used to retire the company’s existing credit facility and pay related fees and expenses. The remaining capacity will bolster the company’s access to capital._x000D_
_x000D_
Under the terms of the new loan, $160 million of the loan will be funded up-front and the remaining $115 million will be available after Jan. 1, 2025, of which $65 million is at borrower’s option from Jan. 1, 2025 through June 30, 2026 and $50 million is at lender’s discretion through Jan. 1, 2029._x000D_
_x000D_
“The completion of this refinancing initiative is an important step in Orthofix’s trajectory and provides us with more favorable terms under which we can continue to invest in the growth and evolution of the company,” Julie Andrews, chief financial officer of Orthofix, said. “Our performance to date in 2024 has been characterized by steady financial improvements throughout the year, including significant progress in adjusted EBITDA and becoming free cash flow positive, both of which underpin our confidence in our ability to drive long-term profitable growth.”_x000D_
_x000D_
“On the heels of our strong third quarter, it’s clear that Orthofix’s focus on executing a clear strategy for profitable growth is delivering compelling results. Through our focus on bringing to market a comprehensive portfolio of transformative solutions and delivering unmatched customer service, which collectively are helping us drive more profitable sales, we have significantly improved our operating and financial position and paved the way for sustainable growth,” Massimo Calafiore, president and CEO of Orthofix, said. “As we look to 2025 and beyond, we plan to build on our progress by further sharpening our commercial focus, operating with discipline for margin expansion and ensuring we are best positioned to create value for our shareholders over the long term.”_x000D_
_x000D_
The lending group includes Oxford Finance and K2 HealthVentures._x000D_
_x000D_
“We are proud to partner with Orthofix as they advance their mission to enhance mobility and improve quality of life for patients worldwide,” Garrett Henn, managing director and co-head of enterprise lending at Oxford, said. “Our partnership underscores our confidence in Orthofix’s experienced leadership team and their strategy to drive sustainable, long-term growth and profitability.”