Silk Road Medical gets up to $250 million five-year loan via Oxford

By Marisa Wong

Los Angeles, May 31 – Silk Road Medical, Inc. entered into a five-year loan arrangement with Oxford Finance LLC for an up to $200 million term loan and an up to $50 million revolving line of credit.

The transaction brings the company’s total cash, cash equivalents and access to liquidity to about $340 million, according to a Tuesday press release.

The new five-year term loan has four years of interest-only payments and a current coupon of 5.85%, reflective of a base rate of 5% plus one-month SOFR, subject to a floor of 85 basis points and a cap of 250 bps.

The company has the option to extend both the interest-only period and maturity date for an additional year.

The $50 million revolving credit line also carries a five-year term with a base rate of 3% plus one-month SOFR, subject to a floor of 85 bps and a cap of 250 bps.

The revolving credit line will be extended in tandem with any extension of the term loan maturity date and is subject to the completion of a collateral audit by Oxford before it may be utilized.

At close, the company drew $75 million in funding from the new term loan and used $49.2 million of the proceeds to retire its existing debt facility from Stifel Bank.

A second tranche of up to $75 million, which can be drawn in partial increments, is available through Dec. 31, 2024, solely at the company’s option and not contingent upon financial, commercial or other related milestones.

A third tranche of up to $50 million is also available through Dec. 31, 2024, contingent upon generating specified trailing revenues relative to the funded term loan amount.

Armentum Partners was financial advisor to Silk Road on the transaction.

Silk Road is a medical device company located in Sunnyvale, Calif., and Plymouth, Minn., that is focused on reducing the risk of stroke.

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