OrthoPediatrics secures $80 million via five-year term loan, revolver

By Devika Patel

Knoxville, Tenn., Jan. 2 – OrthoPediatrics Corp. arranged an $80 million credit agreement with agent MidCap Funding IV Trust and several lenders on Dec. 29, according to an 8-K filing with the Securities and Exchange Commission.

This facility replaces the company’s $50 million revolving credit facility with Squadron Capital LLC, under which there was no outstanding debt. The company has terminated the Squadron revolver in connection with the new credit agreement.

Under the new credit agreement, the company will have access to a $30 million term loan that will be made available in three tranches of $10 million each. The company may also avail itself of up to $50 million, which will be available in the form of a revolving loan.

Interest on the term loan will accrue at the greater of SOFR plus 650 basis points and 9%.

Interest on the revolving loan will accrue at the greater of SOFR plus 400 bps and 6.5%.

Interest will be payable monthly.

The loans both mature on Dec. 1, 2028, or earlier if a change of control event occurs.

The lenders may accelerate payment if the company defaults on the loans, which are secured by company assets.

The pediatric orthopedic medical device company is based in Warsaw, Ind.

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