MiMedx Group closed a three-year term loan facility with Blue Torch Finance in the aggregate principal amount of $75 million, of which the full amount was borrowed and funded.
The term loan will enable MiMedx to, among other things, implement its long-range strategic plan and accelerate the company’s timeline to achieve its growth objectives, including the Biologics License Application (BLA) pipeline. The proceeds of the term loan facility will additionally be used for working capital, general corporate purposes, and certain contingent liabilities of the company.
“Our ability to secure this debt financing, which significantly strengthens our balance sheet, is a testament to how far we have come in our efforts to turn the corner and get the company back on track,” said Ed Borkowski, interim chief financial officer for MiMedx. “We are intently focused on executing the company’s long-range strategic plan and completing the financial restatement. This financing transaction represents another important milestone in the company’s turnaround plan to enhance long-term shareholder value.”
The agreed-upon financing does not include any equity or equity-linked component and is therefore non-dilutive to shareholders.
PJT Partners is acting as financial advisor to MiMedx, and Skadden, Arps, Slate, Meagher & Flom is acting legal counsel to MiMedx. Proskauer Rose LLP is acting as legal counsel to Blue Torch.
MiMedx is an advanced wound care company and an emerging therapeutic biologics company developing and distributing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare.
