Organogenesis closes $200 million two-part five-year credit facility

By Wendy Van Sickle

Columbus, Ohio, Aug. 9 – Organogenesis Holdings Inc. closed a new $200 million credit agreement with Silicon Valley Bank as bookrunner and administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility comprises a $75 million term loan facility and a $125 million revolving credit facility, both maturing on Aug. 6, 2026.

Borrowings bear interest at Libor plus a margin ranging from 200 basis points to 325 bps, depending on leverage ratio.

The revolver has a commitment fee rating from 25 bps to 40 bps.

The company must make quarterly amortization payments on the term loan at 0.625% of the original principal amount, stepping out to 1.25% on Sept. 30, 2022, to 1.875% on Sept. 30, 2023 and to 2.5% on Sept. 30, 2025.

There is a minimum fixed-charge coverage ratio of 1.25 times and a maximum consolidated total leverage ratio of 3.5 times with a step-down to 3.25 times for the quarter ending Dec. 31, 2022 and to 3 times for the quarter ending Dec. 31, 2023.

Borrowings may be used for general corporate purposes and to repay existing debt.

Joint lead arrangers are Silicon, Bank of America, NA, Citizens Bank NA and PNC Capital Markets LLC.

The regenerative medicine company offers a portfolio of bioactive and acellular biomaterials products in advanced wound care and surgical biologics, including orthopedics and spine.

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