Shoulder Innovations, a commercial-stage medical technology company exclusively focused on transforming the shoulder surgical care market, closed two new credit facilities for an aggregate amount of up to $50 million with Stifel Venture Banking.
The new credit facilities consist of a $15 million growth capital term loan, fully funded at closing to refinance the company’s existing credit facility, and a $30 million undrawn line of credit, with an additional $5 million accordion feature available upon the company’s request, subject to certain conditions. The annual interest rate under the term loan is equal to the greater of (i) 0.75% below the prime rate and (ii) 5.00%, and the annual interest rate under the line of credit is equal to the greater of (i) the prime rate and (ii) 5.00%. The term loan is interest-only through June 30, 2029, and matures in June 2031, and the line of credit matures in June 2029. At close, the new credit facilities do not result in additional indebtedness and do not include warrants.
“This refinancing represents an important step in strengthening our financial foundation as we continue to rapidly scale Shoulder Innovations,” Jeff Points, chief financial officer of Shoulder Innovations, said. “The new credit facility significantly improves the economics of our existing debt structure, provides additional financial flexibility and better aligns our lender relationships with the current stage of our business. We are pleased to partner with Stifel Venture Banking, whose platform and resources are well suited to support our needs today and to grow with us over time.”
