Aspen Aerogels, a technology company in sustainability and electrification solutions, closed on a $125 million term loan facility and $100 million capacity asset-based revolving credit facility with MidCap Financial, a commercial finance company managed by Apollo Capital Management, focused on middle market transactions.
The collateral structure of this agreement excludes the assets of Aspen’s wholly-owned subsidiary, Aspen Aerogels Georgia, including the company’s planned second aerogel manufacturing facility in Statesboro, Georgia. The proceeds from this transaction will be utilized for the full cash redemption of the company’s legacy convertible note and for general corporate purposes. The term loan has a maturity date of Aug. 19, 2029.
“MidCap Financial is an outstanding partner for us as we continue to build a highly valuable and profitable business by leveraging our Aerogel Technology Platform into high-growth markets,” Donald R. Young, president and CEO of Aspen, said. “This transaction was made possible by Aspen’s dedicated focus on generating near-term profitability.”
“The combined $225 million debt facilities put us on a path to further reduce our cost of capital, while giving us access to additional liquidity to support profitable revenue growth,” Ricardo C. Rodriguez, chief financial officer and treasurer of Aspen, said. “The collateral structure of the agreement is also specifically optimized to fit into the anticipated structure of our previously disclosed potential debt option for accelerating the longer-term construction of our second aerogel manufacturing facility in Statesboro, Georgia. Thinking longer-term, eliminating the potential overhang of the existing convertible piece of debt near or above the conversion share price of approximately $29.94 is an added benefit that can enable value creation.”
