BIOLASE entered into a $12.5 million senior secured term loan agreement with SWK Funding, a subsidiary of SWK Holdings, a Dallas-based healthcare focused investment firm.
BIOLASE used a portion of the proceeds to retire its Western Alliance Bank debt and plans to use the remaining proceeds to provide additional working capital to fund the company’s growth initiatives, including the market models in LA/Orange County and Dallas/Ft. Worth, while also broadening its customer base and increasing the utilization of its products to drive recurring higher margin consumables revenue.
The loan was fully funded at closing with a five-year term bearing interest, initially, at 12.5 percent per annum with an 18-month interest-only period, which can be extended based upon BIOLASE meeting certain financial metrics.
“SWK is a highly-regarded name in the healthcare sector and their commitment to fund our growth demonstrates a high-level of confidence in our ability to successfully execute on our near and long-term business objectives,” commented John Beaver, EVP and CFO of BIOLASE. “I believe this is a win-win for all of our stakeholders as it provides BIOLASE with sufficient liquidity to execute our long-term plan to further our current growth trajectory and drive towards profitability without the need for additional capital.”
“BIOLASE is in dental lasers, a significantly under-penetrated market, and we look forward to working with the team to help them execute their long-term growth objectives,” said Winston Black, CEO of SWK Holdings. “As a Dallas-based firm, we are especially pleased to have them initiate their second Model Market initiative locally as we believe this market presents a significant opportunity for BIOLASE to heighten its awareness.”
