Apyx Medical signs for $35 million credit facility with MidCap

Chicago, Feb. 21 – Apyx Medical Corp. signed for a $35 million credit facility with MidCap Financial, according to a press release.

The five-year facility consists of a $10 million revolver and $25 million of term loans.

At closing, net proceeds of around $8 million were available to the borrower and $5 million of the revolving portion of the facility.

The breakdown of the $25 million term loan is an initial $10 million term loan and then additional tranches of $5 million and $10 million that can be drawn upon satisfaction of certain conditions and covenants, including reaching certain net revenue thresholds by Dec. 31, 2023 and Sept. 30, 2024, respectively.

The term loan has 24 months of interest-only payments, which can be possibly extended to 36 months upon satisfaction of certain conditions.

Draws on the revolver will be based on the company’s inventory and receivables balances.

Interest will be at one-month SOFR plus 735 basis points for the term loan and one-month SOFR plus 400 bps for the revolver, subject to a 2.5% SOFR floor. There is also a credit spread adjustment of 10 bps.

The maturity date is Feb. 1, 2028.

Proceeds will be used for strategic growth initiatives.

The credit facility is secured by a lien on substantially all of the assets of the company.

MidCap also received warrants with an exercise price of $3.40 per share to purchase up to 250,000 shares of its common stock.

Piper Sandler worked as the financial adviser to the company.

Apyx manufactures a proprietary helium plasma and radio frequency technology. The company is based in Clearwater, Fla.

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