Orthofix Announces New Term Loan
07 Noviembre 2024 - 6:05AM
Business Wire
New Financing Replaces Existing Term Loan
and Seeks to Further Optimize the Company’s Capital Structure to
Support Long-Term, Profitable Growth
Orthofix Medical Inc. (NASDAQ:OFIX), a leading global medical
technology company, today announced the entry into a new credit
agreement providing the Company with up to $275 million in a
senior-secured term loan with a 48-month interest only period. The
term loan is agented by Oxford Finance LLC (“Oxford”) and provides
non-dilutive capital and financial flexibility to support
Orthofix’s continued focus on profitable growth. The proceeds from
the initial funding of the term loan will be used to retire the
Company’s existing credit facility and pay related fees and
expenses. The remaining capacity will bolster the Company’s access
to capital.
Under the terms of the new loan, $160 million of the loan will
be funded up-front and the remaining $115 million will be available
after January 1, 2025, of which $65 million is at borrower’s option
from January 1, 2025 through June 30, 2026 and $50 million is at
lender’s discretion through January 1, 2029.
“The completion of this refinancing initiative is an important
step in Orthofix’s trajectory and provides us with more favorable
terms under which we can continue to invest in the growth and
evolution of the Company,” said Julie Andrews, Chief Financial
Officer. “Our performance to date in 2024 has been characterized by
steady financial improvements throughout the year, including
significant progress in adjusted EBITDA and becoming free cash flow
positive, both of which underpin our confidence in our ability to
drive long-term profitable growth.”
Massimo Calafiore, President and Chief Executive Officer, added,
“On the heels of our strong third quarter, it’s clear that
Orthofix’s focus on executing a clear strategy for profitable
growth is delivering compelling results. Through our focus on
bringing to market a comprehensive portfolio of transformative
solutions and delivering unmatched customer service, which
collectively are helping us drive more profitable sales, we have
significantly improved our operating and financial position and
paved the way for sustainable growth. As we look to 2025 and
beyond, we plan to build on our progress by further sharpening our
commercial focus, operating with discipline for margin expansion
and ensuring we are best positioned to create value for our
shareholders over the long term.”
The lending group includes Oxford Finance and K2
HealthVentures.
“We are proud to partner with Orthofix as they advance their
mission to enhance mobility and improve quality of life for
patients worldwide," said Garrett Henn, Managing Director and
Co-Head of Enterprise Lending at Oxford. "Our partnership
underscores our confidence in Orthofix’s experienced leadership
team and their strategy to drive sustainable, long-term growth and
profitability.”
Further details regarding the new debt facility agreement are
included in the Company’s Form 10-Q filed with the U.S. Securities
and Exchange Commission on November 7, 2024 and in the Form 8-K
that will be filed by the Company.
About Orthofix
Orthofix is a global medical technology company headquartered in
Lewisville, Texas. By providing medical technologies that heal
musculoskeletal pathologies, we deliver exceptional experiences and
life-changing solutions to patients around the world. Orthofix
offers a comprehensive portfolio of spinal hardware, bone growth
therapies, specialized orthopedic solutions, biologics and enabling
technologies, including the 7D FLASH™ navigation system. To learn
more, visit Orthofix.com and follow on LinkedIn.
About Oxford Finance LLC
Oxford Finance LLC is a specialty finance firm providing senior
secured loans to public and private life sciences, healthcare
services, healthtech, business services and SaaS companies
worldwide. For over 20 years, Oxford has delivered flexible
financing solutions to over 700 companies, allowing borrowers to
maximize their equity by leveraging their assets. Since 2002,
Oxford has originated more than $13 billion in loans. Oxford is
headquartered in Alexandria, Virginia, with additional offices
serving the greater San Diego, San Francisco, Boston and New York
City metropolitan areas. For more information, visit
https://oxfordfinance.com.
Forward-Looking Statements
This news release may include forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, and Section 27A of the Securities Act of 1933, as
amended. In some cases, you can identify forward-looking statements
by terminology such as “may,” “will,” “should,” “expects,” “plans,”
“anticipates,” “believes,” “estimates,” “projects,” “intends,”
“predicts,” “potential,” “continue” or other comparable
terminology. Orthofix cautions you that statements included in this
news release that are not a description of historical facts are
forward-looking statements that are based on the Company’s current
expectations and assumptions. Each forward-looking statement
contained in this news release is subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statement. Applicable risks
and uncertainties include, among others: the risks identified under
the heading “Risk Factors” in Orthofix Medical Inc.’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2023, which was
filed with the Securities and Exchange Commission (SEC) on March 5,
2024, as well as any subsequent Quarterly Report on Form 10-Q or
Current Report on Form 8-K filed with the SEC. The Company’s public
filings with the SEC are available at www.sec.gov. You are
cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date when made. Orthofix
does not intend to revise or update any forward-looking statement
set forth in this news release to reflect events or circumstances
arising after the date hereof, except as may be required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20241107942519/en/
Investor Relations Julie Dewey JulieDewey@Orthofix.com
209.613.6945 Media Relations Denise Landry
DeniseLandry@Orthofix.com 214.937.2529
Orthofix Medical (NASDAQ:OFIX)
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