STRATA Skin Sciences, a medical technology company dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, completed the refinancing of its existing debt agreement with a new facility from MidCap Financial. The new debt facility consists of a refinancing of the existing $8 million term loan and an additional $7 million tranche funded at closing. The company also has the option to receive an additional $5 million tranche in 2024.
“We are pleased to complete this debt refinancing and enter into a new term agreement with MidCap,” Chris Lesovitz, CFO of STRATA Skin Sciences, said. “We have increased our cash position to approximately $10 million, further strengthening our balance sheet and providing the liquidity required to execute our strategic growth initiatives and mitigate the need for an interim equity raise.”
The facility matures on June 1, 2028, and shall be payable monthly in arrears at an annual rate of Adjusted Term Secured Overnight Financing Rate (SOFR) plus 7.50%, subject to a SOFR floor of 3.50%. The term provides for interest only-payments until June 1, 2026, and straight-line amortization for the remaining term. “Adjusted Term SOFR ” means the per annum rate equal to the sum of 30-day forward-looking secured overnight Term SOFR, as published by CME Group Benchmark Administration Limited from time to time, plus 0.10% reset monthly. The company also amended and restated the existing warrant previously issued so that it has an exercise price of $0.88 per share to purchase 800,000 shares of the company’s common stock to MidCap. The company agreed to register the shares underlying this warrant for resale.
