Establishment Labs enters into $225 million facility with Oaktree

By Rebecca Melvin

New York, April 26 – Establishment Labs Holdings Inc. entered into a $225 million five-year term loan facility with funds managed by Oaktree Capital Management, LP, according to a press release.

The proceeds from the first tranche of the facility will be used to retire the company’s current term loan, to fund construction of the new Sulayom Innovation Campus in Costa Rica and for general corporate purposes and working capital.

Interest will accrue at a fixed rate of 9% per year and will step down to 8.25% after funding conditions for the fourth tranche are met.

The company can elect to pay in kind up to two-thirds of cash interest payments for the first 24 months of the loan term, resulting in a minimum initial cash interest rate of 3%.

The first tranche of $150 million will be drawn immediately, with the remaining three tranches available upon the achievement of certain commercial and regulatory milestones.

Tranche B of $25 million will be available before Sept. 30, 2023 and upon trailing 12-month product net sales exceeding $145 million; and tranche C of $25 million will be available before March 31, 2024 and upon either trailing 12-month product net sales exceeding $185 million or upon FDA approval of certain Motiva implants for use in the United States, whichever is achieved earlier.

Tranche D of $25 million will be available before Dec. 31, 2024 and upon both trailing 12-month product net sales exceeding $225 million and FDA approval of certain Motiva implants for use in the United States.

The medical device and aesthetics company is based in Costa Rica.

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