Treace Medical Concepts, a medical technology company, entered into a new, five-year $175 million senior secured loan arrangement with credit funds managed by SLR Capital Partners, consisting of $60 million in term loans funded at close, $65 million of additional term loan availability, and a $50 million revolving credit facility, each subject to certain conditions. Proceeds from the new term loan were used to prepay the Company’s $50 million term loan and $4 million drawn under its previously-existing revolving credit facility.
“This financing gives us a capital-efficient vehicle, helping our business stay well-capitalized as we work to expand our market and strengthen our competitive position,” John T. Treace, CEO, founder and chairman of Treace, said. “By securing this non-dilutive $175 million debt facility, we are further reinforcing our balance sheet and enhancing our financial flexibility to advance our commercial strategies and our goal of becoming the standard of care in bunion surgery.”
The company’s new loan arrangement includes a maturity date of five years for both the term loan and revolving credit facility. The annual interest rate is equal to the applicable SOFR subject to a floor of 3%, plus (1) 5.05% under the term loan and (2) 4% under the revolving loan. The term loan provides for 48 months of interest-only payments, which can be extended by 12 additional months.
With the completion of this refinancing, the company now has total liquidity, consisting of cash, cash equivalents, marketable securities and unused availability under its new credit facility (subject to meeting certain conditions), of approximately $165 million.
Armentum Partners served as financial advisor to Treace on the transaction.
