Surmodics gets $100 million credit facilities via MidCap Financial

By Sara Rosenberg

New York, Oct. 17 – Surmodics Inc. closed on Friday on $100 million of credit facilities due Oct. 1, 2027, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The credit facilities consist of a $25 million revolver, a $25 million term loan tranche 1 and a $50 million term loan tranche 2 available to be drawn until Dec. 31, 2024.

The term loan tranche 2 may be drawn in $10 million increments.

In addition, prior to Dec. 31, 2024, the term loan lenders may fund an additional $25 million term loan tranche upon the written request of the company.

Pricing on the revolver is SOFR plus 300 basis points with a 1.5% floor, and pricing on the term loans is SOFR plus 575 bps with a 1.5% floor.

The term loans have hard call protection of 103 in year one, 102 in year two and 101 in year three.

If the revolver is terminated in whole or in part prior to the maturity date, the company must pay a prepayment fee equal to 3% of the terminated commitment amount for the first year following the closing date of the credit agreement, 2% of the terminated commitment amount for the second year and 1% of the terminated commitment amount for the third year.

The company is also required to pay a full exit fee at the time of maturity or full prepayment event equal to 2.5% of the aggregate principal amount of the term loans and a partial exit fee at the time of any partial prepayment event equal to 2.5% of the amount prepaid.

MidCap Financial Trust is the term loan servicer and Mid Cap Funding IV Trust is the agent on the deal.

Upon closing, the company drew $5 million under the revolver and the $25 million term loan tranche 1 to repay about $10 million of borrowings under a loan and security agreement with Bridgewater Bank and the rest will be used for working capital needs and other general corporate purposes.

Surmodics is an Eden Prairie, Minn.-based provider of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic immunoassay tests and microarrays.

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