TSL Express Daily News

AVITA Medical, Inc. entered into a Credit Agreement, by and between the Company, as borrower, and an affiliate of OrbiMed as the lender and administrative agent . The Credit Agreement provides for a five-year senior secured credit facility in an aggregate principal amount of up to $90 million, of which (i) $40 million was made available on the Closing Date, (ii) $25 million will be made available, at the Company?s discretion, on or prior to December 31, 2024, subject to certain net revenue requirements, and (iii) $25 million will be made available, at the Company?s discretion, on or prior to June 30, 2025, subject to certain net revenue requirements. On October 18, 2023, the Company closed on the Initial Commitment Amount, less certain fees and expenses payable to or on behalf of the Lender.

All obligations under the Credit Agreement will be guaranteed by all of the Company?s wholly owned subsidiaries (subject to certain exceptions) and secured by substantially all of the Company's and each guarantor's assets. If, for any quarter until the maturity date of the Loan Facility, the Company?s net revenue does not equal or exceed the applicable trailing twelve-month amount as set out in the Credit Agreement, then the Company shall repay in equal quarterly installments equal to 5.0% of the outstanding principal amount of the Loan Facility on the date the net revenue amount was not satisfied, together with a repayment premium and other fees. The Company shall repay amounts outstanding under the Loan Facility in full immediately upon an acceleration as a result of an event of default as set out in the Credit Agreement, together with a repayment premium and other fees.

During the term of the Loan Facility, interest payable in cash by the Company shall accrue on any outstanding amounts under the Loan Facility at a rate per annum equal to the greater of (x) the SOFR rate for such period and (y) 4.00% plus, in either case, 8.00%. During an event of default, any outstanding amount under the Loan Facility will bear interest at a rate of 4.00% in excess of the otherwise applicable rate of interest. The Company will pay certain fees with respect to the Loan Facility, including an upfront fee, an unused fee on the undrawn portion of the Loan Facility, an administration fee, a repayment premium and an exit fee, as well as certain other fees and expenses of the Lender.