Treace Medical secures up to $175M in debt financing

Treace Medical (TMCI) Concepts entered into a new five year $175M senior secured loan arrangement with credit funds managed by SLR Capital Partners, consisting of $60 million in term loans funded at close, $65M of additional term loan availability, and a $50M revolving credit facility, each subject to certain conditions. Proceeds from the new term loan were used to prepay the Company’s $50M term loan and $4M drawn under its previously-existing revolving credit facility. The Company’s new loan arrangement includes a maturity date of five years for both the term loan and revolving credit facility. The annual interest rate is equal to the applicable SOFR1 subject to a floor of 3%, plus 5.05% under the term loan and 4% under the revolving loan. The term loan provides for 48 months of interest-only payments, which can be extended by 12 additional months. With the completion of this refinancing, the Company now has total liquidity, consisting of cash, cash equivalents, marketable securities, and unused availability under its new credit facility, of approximately $165M.