Vericel enters $150 million five-year senior secured revolver

By Marisa Wong

Los Angeles, Aug. 2 – Vericel Corp. entered into a $150 million five-year senior secured revolving credit facility on July 29, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Chase Bank, NA acted as bookrunner and lead arranger.

The revolver includes a $5 million limit for swingline loans. In addition, the facility includes a $15 million sub-facility for the issuance of letters of credit.

All commitments will terminate and the revolver will mature on July 29, 2027.

Borrowings bear interest at SOFR plus 10 basis points plus a spread ranging from 125 bps to 250 bps, depending on the company’s total net leverage ratio.

The revolver also includes a commitment fee, which ranges from 20 bps to 25 bps based on the total net leverage ratio.

The revolver includes a financial covenant requiring the company to maintain a maximum total net leverage ratio.

Proceeds may be used for general corporate purposes, including acquisitions and capital expenditures.

Vericel is a biopharmaceutical company based in Cambridge, Mass.

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