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Establishment Labs Amends $225MM Term Loan Facility with Oaktree

February 26, 2024, 07:00 AM
Filed Under: Medical

Establishment Labs Holdings, a medical technology company focused on women’s health, initially in the breast aesthetics and reconstruction market, amended its $225 million term loan facility with funds managed by Oaktree Capital Management (“Oaktree”).

The terms on the two tranches already drawn under the facility, which total $175 million, are unchanged. The remaining two $25 million tranches are amended as follows:

  • Tranche C of $25 million available before December 31, 2024 and upon FDA approval of Motiva Implants® in the U.S.
  • Tranche D of $25 million available before June 30, 2025 and upon both Tranche C being drawn and trailing twelve-month sales exceeding $195 million.
  • Interest will accrue on Tranches C and D at a fixed rate of 10.0% per annum.

“This amended facility provides access to additional capital, should we need it, to ensure our successful launch of Motiva Implants in the United States,” said Juan José Chacón-Quirós, CEO and Founder of Establishment Labs. “Even with this access to additional capital, we are focused on getting our current business to EBITDA positive in 2024 and cash flow positive in 2025, and our timeline for US market entry remains unchanged. Oaktree has proven to be a valuable partner in our journey to transform breast aesthetics and reconstruction, and we thank them for their continued confidence.”

“In the two years since we partnered with Establishment Labs, the company has achieved a number of key milestones on their path to global leadership in this industry,” added Aman Kumar, Co-Portfolio Manager of Life Sciences Lending at Oaktree. “The pending launch of Motiva Implants into the United States is perhaps the most significant of them all. We look forward to continuing our long-term relationship with Establishment Labs and are excited for what lies ahead.”

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