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Shockwave Medical signs for $175 million five-year revolver
Chicago, Oct. 20 – Shockwave Medical, Inc. entered into a $175 million revolving credit agreement on Wednesday with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The maturity date is Oct. 19, 2027.
At signing, the company had $25 million of revolving loans outstanding.
There is an accordion feature for the greater of $100 million or the company’s consolidated EBITDA for the four-quarter period most recently ended before such an increase.
Loans will bear interest at SOFR plus 100 basis points to 200 bps, based on the company’s consolidated total net leverage ratio.
The commitment fee on unused amounts will be between 20 bps and 30 bps.
The leverage ratio covenant, tested quarterly, requires the company to not exceed a maximum leverage ratio of 3.5x, subject to an acquisition-based step-up for four quarters to 4x.
Wells Fargo Securities, LLC and Silicon Valley Bank are the joint lead arrangers and joint bookrunners.
Silicon Valley Bank is the syndication agent.
Proceeds may be used to finance capital expenditures and for working capital and general corporate purposes.
The new credit facility replaces the company’s early loan and security agreement between the company and Silicon Valley Bank, which had a $16.5 million term loan facility. The company continues to have $1.7 million of letter of credit outstanding with Silicon Valley.
Based in Santa Clara, Calif., the borrower is a medical device company focused on intravascular lithotripsy technology to treat calcified plaque in patients with peripheral vascular, coronary vascular, and heart valve diseases.
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