Surmodics on Monday announced it has entered into a five-year credit agreement with MidCap Financial comprising $100 million in term loans and a $25 million revolving credit facility that matures in five years.
The credit agreement calls for interest-only payments on the term loan over the first four years, which can be extended to five years if certain criteria are met, Surmodics said.
Total interest expense and fees are expected to be about $3.4 million in fiscal 2023.
Surmodics drew $25 million on the term loan and $5 million on the revolving credit facility at close.
The proceeds were partially used to retire its $25 million revolving credit facility with Bridgewater Bank, of which $10 million was outstanding, the firm said.
Upon closing, the company’s cash balance increased by $19.5 million.
The Eden Prairie, MN-based company is a provider of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic immunoassay tests and microarrays.