SRDX - Surmodics gets additional $125M in credit facility

• Surmodics ( NASDAQ: SRDX ) has entered into a new, five-year credit agreement with MidCap Financial, comprised of up to $100M in term loans and a $25M revolving credit facility.
• The Company drew $25M on the term loan and $5M on the revolving credit facility at close.
• These proceeds were partially used to retire the company’s existing $25M revolving credit facility with Bridgewater Bank, of which $10M was outstanding.
• Upon closing, the company’s cash balance increased by $19.5M.
• Additional draws on the term loan may be made in $10M minimum increments, up to a total of $75M through December 31, 2024. A second tranche of up to $25M may be available through December 31, 2024 at MidCap’s option.
• The credit agreement calls for interest-only payments on the term loan over the first four years, which can be extended to five years if certain criteria are met.
• The revolving credit facility matures in five years.
• Company expects total interest expense and fees under the credit agreement to be ~$3.4M in fiscal 2023.

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