AtriCure gets up to $125 million asset-based three-year revolver

By Mary Katherine Stinson

Lexington, Ky., Jan. 8 – AtriCure, Inc. and wholly owned subsidiary AtriCure, LLC on Jan. 5 signed an asset-based credit agreement, providing an asset-based three-year revolving credit facility of up to $125 million, according to an 8-K filing with the Securities and Exchange Commission.

The borrowers may request an increase in the revolving commitment by up to $40 million, not to exceed a total of $165 million, by obtaining additional lender commitments or with the consent of JPMorgan Chase Bank.

Up to $5 million of the facility is available for the issuance of letters of credit.

The administrative agent, in its sole discretion, may create swingline loans by advancing floating-rate revolving loans requested by borrowers. Any swingline loans will reduce availability under the asset-based facility on a dollar-for-dollar basis.

Amounts available to be drawn under the facility are determined by calculating the applicable borrowing base, based on percentages of the values of eligible domestic accounts receivable, eligible inventory, eligible liquid assets, less reserves as determined by the administrative agent.

Outstanding amounts under the agreement bear interest at adjusted term SOFR plus an applicable margin, initially set at 275 basis points. All swingline loans bear interest at a rate annually equal to the alternate base rate plus the applicable margin.

There are commitment fees totaling 37.5 bps based on the daily available revolving commitment.

Voluntary prepayments may be made at any time without premium or penalty. Any voluntary prepayments made will not reduce the facility commitments.

JPMorgan Chase Bank, NA is the administrative agent and joins Silicon Valley Bank as a joint lead arranger and joint bookrunner.

Proceeds will be used for general corporate purposes and working capital. Proceeds also were used to refinance the company’s debt under the loan and security agreement dated Feb. 23, 2018, which terminated on the closing date.

Based in Mason, Ohio, AtriCure is a medical device company focused on manufacturing surgical tools used in cardiothoracic surgery.

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