AxoGen, a surgical solutions provider for peripheral nerve injuries, completed the refinancing of its existing debt agreement with a new facility from MidCap Financial.

The new facility consists of a $21 million term loan and a $10 million revolving line of credit, of which $4 million has been drawn. The revolving line of credit may be increased up to $15 million at a later date at the company’s request and with approval of Midcap.

The facility carries a 54-month term with interest only payments on the term loan for the first 24 months. The interest rate on the term loan is 8% plus the greater of LIBOR or 0.5%, which at the closing resulted in a rate of 8.5%. Borrowings under the revolving line of credit bear interest of 4.5% plus the greater of LIBOR or 0.5% which, at the closing resulted in a rate of 5%.

Proceeds from this financing were used to repay and retire the company’s existing $25 million term loan and revenue royalty interest agreement with Three Peaks Capital, an indirect wholly-owned subsidiary of Oberland Capital Healthcare Master Fund.

“We are pleased to announce this debt financing with MidCap, a leading financing partner in the healthcare space,” commented Peter J. Mariani, AxoGen chief financial officer. “Following our recent equity raise of $18.6 million, this new and lower cost debt facility further strengthens our balance sheet as we continue to drive growth in this emerging peripheral nerve repair market.”