CIBC Innovation Banking provided Vapotherm, a med-tech company, a term loan and revolving credit facility for up to $52 million. Vapotherm used the proceeds of the facilities  to repay its existing revolving loan facility and term loan facility with Perceptive Credit Holdings II and Alliance Bank.

“We are pleased to announce this debt refinancing with CIBC Innovation Banking, a leading financial institution in the healthcare space,” John Landry, senior vice president and CFO of Vapotherm, said. “This financing provides us with incremental flexibility in order to continue to grow the business while reducing our weighted average cost of capital.”

The agreement provides Vapotherm with a term loan of $40 million, which matures five years from closing. Advances under the term loan bear interest at an annual rate equal to the Wall Street Journal prime rate plus 2.5%, with interest-only payments for the first 36 months before the loan begins to amortize in 24 equal monthly installments. The agreement also provides the company with a revolving line of credit of up to $12 million. The revolving line of credit matures two years from closing and advances under the revolving credit facility bear interest at an annual rate equal to the Wall Street Journal prime rate plus 1%. The term loan facility and the revolving credit facility are secured by a lien on substantially all of the assets of the company, including the company’s intellectual property.

On Oct. 21, Vapotherm utilized approximately $40 million under its new term loan facility, approximately $4.9 million of the new revolving credit facility and cash to pay off all outstanding obligations under its prior term loan facility with Perceptive Credit Holdings II, and to pay off all outstanding obligations under its prior revolving credit facility with Western Alliance Bank.

Vapotherm, based in Exter, NH, is a developer and manufacturer of respiratory technology.