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Deerfield, Endologix Ink Debt Restructuring Deal

February 25, 2020, 09:00 AM
Filed Under: Healthcare

Endologix, Inc., a developer and marketer of innovative treatments for aortic disorders, announced that it has entered into an exchange agreement with three holders of the Company’s 3.25% Senior Convertible Notes due 2020 (the “Existing Notes”), pursuant to which these investors exchanged an aggregate of approximately $11.0 million of the Existing Notes plus accrued interest for approximately $11.1 million of 5.0% Voluntary Convertible Senior Secured Notes due 2024 (the “New Notes”). This agreement will replace the Company’s existing 3.25% Convertible Senior Notes due 2020 for those investors.

The Company and certain funds managed by Deerfield Management Company, L.P. (collectively, “Deerfield”) also agreed to amend their existing facility agreement and credit agreement to extend near-term mandatory amortization payments and provide for certain conversion rights and obligations pertaining to the Company’s debt to Deerfield.

“We are very pleased to announce these debt restructuring transactions, which enables us to address our balance sheet in a responsible manner, over time. I’m very grateful to our finance and legal teams and to our supportive partners who worked to build conversion features that will help us execute against key milestones, including the Nellix PMA. This agreement allows us to keep capital on the balance sheet and remain focused on business execution in pursuit of delivering value to our patients, customers, and shareholders,” commented John Onopchenko, Chief Executive Officer of Endologix, Inc.

Vaseem Mahboob, Chief Financial Officer of Endologix, Inc., commented, “This debt restructuring addresses our near-term balance sheet overhang and provides a pathway to significantly deleverage our debt and achieve operating cash flow breakeven in 2021. As we continue to execute our commercial evidence-based strategies to grow and prudently manage our operating costs, we believe that Endologix is well positioned to achieve its near-term financial goals while creating a path to long-term profitable growth and shareholder value.”

DLA Piper and Jefferies LLC served as legal counsel and financial advisor to the Company, respectively.

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