MiMedx Secures $75 million Non-Dilutive Debt Financing
MARIETTA, Ga., June 11, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, today announced it has entered into a loan agreement with Blue Torch Finance LLC ("Blue Torch"), under which Blue Torch will provide MiMedx a three-year term loan facility (the "Term Loan Facility") in the aggregate principal amount of $75 million, of which the full amount was borrowed and funded.
MiMedx's entry into the Term Loan Facility follows the Company's April 11, 2019, announcement, in which MiMedx noted that it intended to seek capital to, among other things, implement its long-range strategic plan and accelerate the Company's timeline to achieve its growth objectives, including the Biologics License Application (BLA) pipeline. The proceeds of the Term Loan Facility will additionally be used for working capital, general corporate purposes, and certain contingent liabilities of the Company.
"Our ability to secure this debt financing, which significantly strengthens our balance sheet, is a testament to how far we have come in our efforts to turn the corner and get the Company back on track," said Ed Borkowski, Interim Chief Financial Officer for MiMedx. "We are intently focused on executing the Company's long-range strategic plan and completing the financial restatement. This financing transaction represents another important milestone in the Company's turnaround plan to enhance long-term shareholder value."
MiMedx notes that it has no other outstanding long-term debt. The agreed-upon financing does not include any equity or equity-linked component and is therefore non-dilutive to shareholders. Additional details regarding the Term Loan Facility and relevant terms will be available in a Form 8-K filed with the Securities and Exchange Commission.
PJT Partners is acting as financial advisor to MiMedx, and Skadden, Arps, Slate, Meagher & Flom LLP is acting legal counsel to MiMedx. Proskauer Rose LLP is acting as legal counsel to Blue Torch.
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SOURCE MiMedx Group, Inc.
Company Codes: OTC-PINK:MDXG, OtherOTC:MDXG