Establishment Labs, a global medical technology company dedicated to improving women’s health and wellness, principally in breast aesthetics and reconstruction, entered into a $300 million senior secured term loan facility with funds managed by Oaktree Capital Management.
The amended and restated facility refinances the company’s existing debt and allows access to additional capital to support ongoing operations and future strategic growth initiatives.
“This strengthens our capital structure by extending our maturity and enhancing our financial flexibility,” Sandra Harris, chief financial officer of Establishment Labs, said. “The initial tranche fully refinances our existing debt until 2031 and the additional capacity provides flexibility to support future strategic initiatives. Our business continues to accelerate, and we expect to be positive free cash flow in the second half of this year with substantial growth ahead of us. Oaktree’s continued support reflects their long-standing confidence in our business, and we are very pleased to continue our collaboration with them.”
Aman Kumar, co-portfolio manager for Oaktree’s life sciences lending platform, added, “Oaktree is proud to continue its support of Establishment Labs. Over the past four years, we have witnessed the company’s commitment to strong fundamentals and sustainable growth, supported by important innovation in breast aesthetics and reconstruction and the rapid market expansion of Motiva implants in the United States. We look forward to continuing our partnership with Establishment Labs and supporting the management team in its next phase of growth.”
Key terms of the credit facility:
- $300 million senior secured first-lien term loan with a five-year maturity
- Two-tranche structure:
- Tranche E, $265 million, used to refinance existing indebtedness
- Tranche F, $35 million available for future growth initiatives
- Fixed interest rate with potential step-down based on leverage targets
- No amortization, with principal due at maturity
- Flexible prepayment capability
Consistent with the terms of the existing debt, the amended and restated facility will be secured by a first-priority lien on substantially all assets of the company. The definitive documentation is substantially consistent with the company’s prior credit agreement, with updates reflecting current market terms and the company’s evolving and growing business.
