MiMedx Group inks up to $95 million agreement via Citizens Bank

By Mary Katherine Stinson

Lexington, Ky., Jan. 22 – MiMedx Group, Inc. entered into a credit agreement on Jan. 19 with Citizens Bank, NA as administrative agent providing senior secured credit facilities totaling up to $95 million, according to an 8-K filing with the Securities and Exchange Commission.

The agreement consists of a $75 million senior secured revolving credit facility with a $10 million letter-of-credit sublimit and a $10 million swingline loan sublimit and a $20 million senior secured term loan facility.

The company has the option to obtain one or more incremental term loan facilities and/or increase the commitments under the revolver in an aggregate principal amount equal to the greater of $50 million and 1x the consolidated EBITDA, each subject to existing or any new lenders’ approval.

Borrowings under the agreement, except for swingline loans, will bear interest at term SOFR plus an applicable margin ranging from 225 basis points and 350 bps. Letter-of-credit fees are based on the same margins. There is a quarterly commitment fee on any unused portion of the revolver, ranging from 25 bps and 50 bps, based on the company’s consolidated total net leverage ratio.

The term loan facility will amortize on a quarterly basis at 1.25% (for years one and two), 1.875% (for years three and four) and 2.5% (for year five) based on the total outstanding principal with the remainder due at maturity.

Borrowings may be voluntarily prepaid without penalties, which will reduce the total unused amount under the revolver.

The agreement matures Jan. 19, 2029.

On Jan. 19, the company borrowed $30 million under the revolver and $20 million under the term loan facility. Proceeds from the initial drawings and cash on hand were used to repay in full outstanding obligations under an existing credit facility with Hayfin Capital, which was set to mature in June 2025. The Hayfin credit agreement was simultaneously terminated.

MiMedx is a Marietta, Ga.-based in advanced wound care and therapeutic biologics company.

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