NeoGenomics closes on revolver, term loan totaling $150 million

By Tali Rackner

Norfolk, Va., Dec. 22 – NeoGenomics, Inc. closed on a new $150 million five-year senior secured credit facility with Regions Bank as administrative agent, according to a press release.

The facility includes a $75 million revolving loan and a $75 million term loan. It replaces the $54.6 million term loan and undrawn $25 million asset-based revolver previously in place.

Initial interest is equal to Libor plus 300 basis points and is subject to a pricing grid based on the ratio of debt to adjusted EBITDA. Interest on the previous term loan was Libor plus 700 bps

The company borrowed $97.9 million at closing, including $75 million of term debt and $22.9 million under the revolver.

Proceeds, combined with about $16 million of cash, were used to retire the existing $54.6 million term loan and redeem 8,066,667 shares of series A redeemable preferred stock held by an affiliate of General Electric Co. for $55 million.

The new credit facility was jointly led by Regions Capital Markets, Merrill Lynch, Pierce, Fenner & Smith, Inc. and Wells Fargo Securities, LLC. Bank of America, NA and Wells Fargo Bank, NA served as co-syndication agents. Hancock Bank, Huntington National Bank and PNC Bank, NA served as co-documentation agents.

Based in Fort Myers, Fla., NeoGenomics is a cancer genetics diagnostics testing company.

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