Kestra Medical Technologies, a wearable medical device and digital healthcare company, entered into a five-year term loan facility with funds managed by Pharmakon Advisors.
The non-dilutive financing consists of:
- $75 million tranche funded at closing, a portion of which was used to retire Kestra’s existing $45 million term loan and pay fees and expenses.
- $25 million tranche available at Kestra’s option through July 2027.
- $50 million tranche available at Kestra’s option through June 2028, subject to generating $150 million of trailing 12-months revenue.
- $50 million uncommitted tranche available for acquisitions at Kestra’s option, subject to Pharmakon’s consent.
The term loan provides for 48 months of interest-only payments, which may be extended by an additional 12 months upon satisfaction of a revenue milestone. Interest will be paid quarterly at a rate per annum equal to the 3-month secured overnight financing rate (SOFR) plus 5.5%, subject to a SOFR floor of 3.25%.
“This financing fortifies Kestra’s balance sheet, reduces the company’s cost of capital and provides us significant financial flexibility,” Brian Webster, president and CEO of Kestra, said. “Given our strong commercial momentum and the attractive unit economics inherent in our business model, we plan on continuing to invest in our growth strategies, positioning Kestra to deliver durable, best-in-class growth for years to come.”
Armentum Partners served as financial advisor to Kestra on the financing.
