Deerfield Management Company announced that it has committed to provide up to $170 million to Endologix, Inc. in a combination of senior secured notes and a working capital facility.
Endologix is a marketer and developer of innovative, minimally invasive technologies that provide personalized treatments to patients suffering from Abdominal Aortic Aneurysms (AAA). The company's unique approach to addressing key issues, such as challenging anatomies, difficult access, and aneurysm sealing, provides patients with improved outcomes and may reduce procedure length and hospital stay with Endovascular Aneurysm Repair (EVAR), Percutaneous Endovascular Aneurysm Repair (PEVAR), and Endovascular Aneurysm Sealing (EVAS) procedures.
The facility provided by Deerfield is comprised of $120 million of senior secured notes and a $50 million revolving line of credit. Warrants to purchase 6.47 million shares were included as part of the senior notes. This financing provides Endologix with capital to retire certain existing debt, as well as fund its development and marketing of EVAR, PEVAR, and EVAS platforms and its procedure planning software.
"We believe Endologix's portfolio provides a broad and innovative range of options for treating AAA patients, from relatively routine cases to complex disease. As recently launched products continue to gain traction and the pipeline matures, we expect Endologix to play an important role in enhancing the standard of care, especially in patients with difficult-to-treat disease," stated Avi Kometz, Partner at Deerfield Management Company.
"We are excited to partner with Deerfield, a leading healthcare investor, to advance our groundbreaking AAA technologies by providing a broad and flexible financing solution to fit our needs," remarked Vaseem Mahboob, Chief Financial Officer at Endologix, Inc. "Deerfield's creative and collaborative process led to a complete financing package that will address both our financing and market research needs."
The financing includes a $50 million revolving line of credit, according to a statement from Endologix. Under terns of the agreement the company may borrow up to the lesser of $50 million or its applicable borrowing base from time to time. Any outstanding principal under the revolving line of credit will accrue interest at a rate equal to the LIBOR Rate plus 4.60%. Endologix is subject to other fees in addition to interest on outstanding principal under the revolving line of credit. This revolving line of credit will replace Endologix’s $50 million asset-based revolving line of credit with MidCap Financial Trust.
Perella Weinberg Partners and J. Wood Capital Advisors served as financial advisors to Endologix in connection with this credit facility.