Artivion obtains $350 million credit facilities in three parts via Ares

By Wendy Van Sickle

Columbus, Ohio, Jan. 18 – Artivion Inc. entered on Jan. 18 into a credit agreement that provides for a $190 million secured term loan facility, a $100 million delayed-draw secured term loan facility and a $60 million senior-priority secured revolving credit facility with Ares Capital Corp. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

All tranches mature on Jan. 18, 2030.

The company borrowed the $190 million term loan and $30 million under the revolver at closing and used proceeds to pay off its existing credit facilities under its 2017 credit agreement with Deutsche Bank AG, New York Branch as administrative agent.

Further revolver proceeds may be used for working capital, capital expenditures and other general corporate purposes.

Subject to satisfaction of a maximum total net leverage ratio, the company may borrow under the delayed-draw term loan until July 1, 2025 with proceeds available only to repurchase or repay its 4.25% convertible senior notes due July 1, 2025.

The term loans bear interest at SOFR plus a margin of 650 basis points, which margin may step down by 25 bps starting with the second fiscal quarter of 2025 based the company’s total net leverage ratio.

The revolver borrowings bear interest at SFOR plus 400 bps.

Artivion will be required to pay fees of 50 bps per annum on the daily unused amount of the revolver and 100 bps per annum on the daily unused amount of the delayed-draw term loan.

The distributor of cryogenically preserved human tissues for cardiac and vascular transplant applications and developer of medical devices is based in Kennesaw, Ga.

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