Medexus Pharmaceuticals entered into a senior secured credit agreement agented by BMO. The credit agreement provides for a $35 million term loan facility and a $3.5 million revolving loan facility for working capital. The term loan facility benefits from an additional $20 million uncommitted accordion feature, which Medexus is confident will be available. The new BMO facilities will mature in March 2026, being three years from the date of the credit agreement.
“As we look ahead to fiscal year 2024, we are pleased to announce this non-dilutive debt financing, which demonstrates our access to capital on competitive terms,” Marcel Konrad, CFO of Medexus, said. “Medexus has delivered sequential revenue growth and improving profitability over the past five fiscal quarters, and we are pleased that our new partners at BMO have recognized the strength and stability of our business.”
Medexus used the net proceeds of the new term loan facility to satisfy all obligations under Medexus’s existing senior secured credit facilities, which otherwise would have matured in July 2023. Borrowings under the new term loan facility bear interest at a rate of adjusted term SOFR plus a margin determined quarterly based on Medexus’s consolidated leverage ratio. The interest rate will initially be 8.58%. This rate compares favorably to Medexus’s now-repaid term loan and asset-based revolving loan facilities, which had interest rates of 11.33% and 8.78% as of the repayment date.
