Bioventus enters $400M senior secured credit agreement

Bioventus (BVS) entered into a $400M Senior Secured Credit Agreement consisting of a $300M term loan facility and a $100M revolving credit facility on July 31. The new Credit Agreement will mature on July 31, 2030. Among the many enhancements, the new Credit Agreement provides for additional liquidity through an increase in the revolving credit facility from $40M under the Company’s previous credit facilities under the Credit and Guaranty Agreement, dated December 6, 2019, as amended to $100M. The current applicable interest margin was reduced 75 basis points compared to the 2019 Credit Agreement generating more than $2M of annual interest expense savings. Finally, the annual amortization on the term loan was lowered from 10 percent to 5 percent per year for the term of the loan. The proceeds resulting from the Credit Agreement were used to repay the outstanding loan balance of $333M under the 2019 Credit Agreement. The Company repaid its obligations under the 2019 Credit Agreement using $30M drawn on the new revolving credit facility along with $3M of cash on the Company’s balance sheet and the new $300M term loan.