Telesis Bio Inc.: debt financing — Telesis Bio in default on term loan; lender demands $15M repayment and warrant for 275K shares

Telesis Bio Inc.

As of Sep 30, 2023, company defaulted on financial revenue covenants under 2022 Term Loan Agreement with MidCap.
On Nov 3, 2023, lender demanded $15M repayment in Nov 2023 and a warrant for 275,000 shares at 10-day VWAP.
Total repayment obligation including exit fee and penalty is approximately $21.7M plus $0.3M prepayment penalty for revolving loan.
In exchange, lender would waive defaults, reset revenue covenants, reduce prepayment penalty to 1%, and reduce exit fee by $350K.
Future extensions of credit under 2022 Revolving Loan Agreement would be frozen.

item 2.04

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.7

Telesis Bio Inc. amended term loan with MidCap Financial Trust.

Instrument: term loan
Counterparty: MidCap Financial Trust
Event: amendment

Exact text from the filing

In exchange for the Company doing the foregoing, the Lender would agree to (i) waive all existing defaults under the 2022 Loan Agreements, (ii) reset revenue covenants under the 2022 Term Loan Agreement, (iii) waive the prepayment penalty related to the $15 million repayment, (iv) reduce the prepayment penalty for the outstanding balance under the 2022 Term Loan Agreement to 1%, (v) freeze any future extensions of credit under the 2022 Revolving Loan Agreement and (vi) reduce the exit fee payable upon complete repayment of amounts left outstanding at the end of term by $350,000, with the remaining $750,000 to be due at payment of the remainder of the loan.

View on SEC.gov

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Telesis Bio Inc. reported a default on revolving credit of $0.3 million with MidCap Funding IV Trust.

Instrument: revolving credit
Principal: $0.3 million
Counterparty: MidCap Funding IV Trust
Event: default

Exact text from the filing

the Lender has the ability to immediately call the balance of the loan, along with a 5.5% exit fee and 3.0% prepayment penalty, amounting to a total repayment obligation of approximately $21.7 million plus a $0.3 million prepayment penalty for the 2022 Revolving Loan.

View on SEC.gov

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Telesis Bio Inc. reported a default on term loan of approximately $21.7 million with MidCap Financial Trust.

Instrument: term loan
Principal: approximately $21.7 million
Counterparty: MidCap Financial Trust
Event: default

Exact text from the filing

has the ability to immediately call the balance of the loan, along with a 5.5% exit fee and 3.0% prepayment penalty, amounting to a total repayment obligation of approximately $21.7 million plus a $0.3 million prepayment penalty for the 2022 Revolving Loan. On November 3, 2023, the Lender provided the Company with notice that it intends to require the Company to (i)

View on SEC.gov

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Telesis Bio Inc. faced acceleration on term loan of $15 million with MidCap Financial Trust.

Instrument: term loan
Principal: $15 million
Counterparty: MidCap Financial Trust
Event: acceleration

Exact text from the filing

On November 3, 2023, the Lender provided the Company with notice that it intends to require the Company to (i) repay $15 million in November 2023 under the 2022 Term Loan Agreement

View on SEC.gov

Browse all debt financings →

Source: SEC EDGAR

accession 0000950170-23-062201

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.