iRhythm closes on delayed-draw credit agreement with Braidwell

Chicago, Jan. 8 – iRhythm Technologies, Inc. closed on a credit, security and guaranty agreement on Jan. 3 with Braidwell Transaction Holdings LLC – Series 5 as lender and Wilmington Trust, NA as administrative and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides a $150 million senior secured delayed-draw term loan.

An initial $75 million was funded on the closing date.

The second $75 million tranche is accessible through the one-year anniversary of the closing date, subject to conditions including compliance with financial covenants.

The term loan matures Jan. 3, 2029.

Interest, at SOFR plus 650 basis points, may be paid in kind with a 45 bps step-up. Any default will mean a 300 bps increase.

Prepayment before the first-year anniversary will be at 102, 101 between year one and year two and then par thereafter.

Mandatory prepayment, including any applicable premium and exit fee, is required upon receipt of proceeds from asset sales and insurance payments.

Security is in the form of a first-lien perfected security interest on substantially all of the borrower’s existing and after-acquired assets.

Covenants include that the company must maintain cash and cash equivalent investments of at least $50 million at the end of each fiscal quarter after the initial closing date and $75 million after the delayed-draw closing date. The company must also maintain a revenue base for the trailing four fiscal quarters of at least $350 million.

Proceeds from the initial loan were approximately $35 million after deducting estimated debt issuance costs, fees and expenses and repaying an existing term loan from Silicon Valley Bank.

Based in San Francisco, iRhythm is a digital health care company that combines wearable biosensor devices and cloud-based data analytics with algorithms that distill data from heartbeats to detect cardiac arrhythmias.

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