NEW YORK–(BUSINESS WIRE)–Establishment Labs Holdings Inc. (NASDAQ: ESTA), a medical technology company focused on women’s health, initially in the breast aesthetics and reconstruction market, today announced that it has amended its $225 million term loan facility with funds managed by Oaktree Capital Management, L.P.
The terms on the two tranches already drawn under the facility, which total $175 million, are unchanged. The remaining two $25 million tranches are amended as follows:
- Tranche C of $25 million available before December 31, 2024 and upon FDA approval of Motiva Implants® in the U.S.
- Tranche D of $25 million available before June 30, 2025 and upon both Tranche C being drawn and trailing twelve-month sales exceeding $195 million.
- Interest will accrue on Tranches C and D at a fixed rate of 10.0% per annum.
“This amended facility provides access to additional capital, should we need it, to ensure our successful launch of Motiva Implants in the United States,” said Juan José Chacón-Quirós, CEO and Founder of Establishment Labs. “Even with this access to additional capital, we are focused on getting our current business to EBITDA positive in 2024 and cash flow positive in 2025, and our timeline for US market entry remains unchanged. Oaktree has proven to be a valuable partner in our journey to transform breast aesthetics and reconstruction, and we thank them for their continued confidence.”
“In the two years since we partnered with Establishment Labs, the company has achieved a number of key milestones on their path to global leadership in this industry,” added Aman Kumar, Co-Portfolio Manager of Life Sciences Lending at Oaktree. “The pending launch of Motiva Implants into the United States is perhaps the most significant of them all. We look forward to continuing our long-term relationship with Establishment Labs and are excited for what lies ahead.”
A Form 8-K outlining the full terms of the credit facility will be filed with the Securities and Exchange Commission.
About Establishment Labs
Establishment Labs Holdings Inc. is a global medical technology company dedicated to improving women’s health and wellness through the power of science, engineering, and technology. The Company offers a portfolio of Femtech solutions for breast health, breast aesthetics and breast reconstruction. The over three million Motiva® devices Establishment Labs has delivered to plastic and reconstructive surgeons since 2010 have created a new standard for safety and patient satisfaction in the over 85 countries in which they are available. The Motiva Flora® tissue expander is used to improve outcomes in breast reconstruction following breast cancer and it is the only regulatory-approved expander in the world with an integrated port using radio-frequency technology that is MR conditional. Mia Femtech™, Establishment Lab’s unique minimally invasive experience for breast harmony, is the Company’s most recent breakthrough innovation. These solutions are supported by over 200 patent applications in 25 separate patent families worldwide and over 50 scientific studies and publications in peer reviewed journals. Establishment Labs manufactures at two facilities in Costa Rica compliant with all applicable regulatory standards under ISO13485:2016 and FDA 21 CFR 820 under the MDSAP program. In 2018, the Company received an investigational device exemption (IDE) from the FDA for Motiva Implants® and began a clinical trial to support regulatory approval in the United States. Please visit our website for additional information at www.establishmentlabs.com.
