Danimer gets $130 million term loan at 14.4% fixed-rate pricing

By Sara Rosenberg

New York, March 20 – Danimer Scientific Inc. closed on Friday on a $130 million senior secured term loan due March 17, 2027 priced at a fixed rate of 14.4%, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Any prepayments made during the first 24 months of the term loan are subject to a make-whole premium.

The term loan has a springing maturity to Sept. 15, 2026 if more than $100 million of the company’s existing convertible notes remain outstanding as of such date.

Jefferies LLC is the lender under the term loan, and U.S. Bank Trust Co. is the administrative agent.

Proceeds are being used to repay the company’s Garja loan and for working capital and general corporate purposes, including capital expenditures, permitted acquisitions, research and development, and general and administrative expenses.

In connection with the term loan, Danimer issued a warrant to Jefferies to purchase 1.5 million shares of the company’s class A common stock at an exercise price of $7.50 per share, subject to customary adjustments, at any time during the five-year exercise period.

The company also announced that on March 16 it amended its Advantage loan to shift to SOFR from Libor and extend the maturity to June 24, 2024.

Southeast Community Development Fund X LLC is the administrative agent for the advantage loan.

Danimer is a Bainbridge, Ga.-based bioplastics company focused on the development and production of biodegradable materials.

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