LumiraDx amends term loan to provide for extension, covenant changes

By Wendy Van Sickle

Columbus, Ohio, June 7 – LumiraDx Investment Ltd. amended its loan agreement dated March 23, 2021 with BioPharma Credit plc as collateral agent to provide for an extension of the $150 million term loan maturity date by two years and revisions to the minimum net sales and minimum liquidity covenants, according to a 6-K filing with the Securities and Exchange Commission.

Under the amendment, if the company completes a qualifying financing, the term loan maturity date will be extended to March 29, 2026; the minimum net sales covenant will be reset to be tested on a quarterly basis at the end of each fiscal quarter with respect to each trailing three-month period; and the minimum liquidity covenant will be reset to be tested daily.

In exchange for these amendments, the company has agreed to pay additional payment-in-kind interest with respect to amounts outstanding in an amount equal to three-month term SOFR and comply with new financial covenants with respect to the maximum adjusted operating expenses and the minimum adjusted operating income, among other things.

The medical technology manufacturer is based on Waltham, Mass.

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