STRATA Skin Sciences, Inc. (SSKN): debt financing — Strata Skin Sciences completes $15M debt refinancing with MidCap; adds $7M new tranche, option for $5M more in 2024

STRATA Skin Sciences, Inc.

Refinanced existing $8M term loan and drew $7M new tranche on June 30, 2023 from MidCap Financial.
Total debt facility $20M with an additional $5M tranche available upon meeting revenue condition in 2024.
Interest rate: Adjusted Term SOFR plus 7.50% (floor 3.50%); interest-only through June 2026, maturity June 1, 2028.
Amended warrant: 800,000 shares at $0.88 exercise price, exercisable until June 2033; shares to be registered.
Company increased cash to ~$10M, strengthening balance sheet and avoiding near-term equity raise.

Key facts

Extracted from this filing and checked against the source text.

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

STRATA Skin Sciences, Inc. incurred term loan of $7.0 million with MidCap Financial Trust at greater of (i) 30-day SOFR + 0.10% and (ii) 3.50% floor, plus 7.50% maturing June 1, 2028.

Instrument: term loan
Principal: $7.0 million
Counterparty: MidCap Financial Trust
Rate: greater of (i) 30-day SOFR + 0.10% and (ii) 3.50% floor, plus 7.50%
Maturity: June 1, 2028
Event: incurrence

Exact text from the filing

Agreement (the “Amendment”) among MidCap Financial Trust (“MidCap”), as administrative agent, and the lenders identified therein, which amended the Credit and Security Agreement, dated as of September 30, 2021, as amended January 10, 2022 and

View on SEC.gov

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

STRATA Skin Sciences, Inc. amended credit facility of senior secured term loan facility of $20.0 million with MidCap Financial Trust at greater of (i) 30-day SOFR + 0.10% and (ii) 3.50% floor, plus 7.50% maturing June 1, 2028.

Instrument: credit facility
Principal: senior secured term loan facility of $20.0 million
Counterparty: MidCap Financial Trust
Rate: greater of (i) 30-day SOFR + 0.10% and (ii) 3.50% floor, plus 7.50%
Maturity: June 1, 2028
Event: amendment

Exact text from the filing

The MidCap Credit Agreement provides for a senior secured term loan facility of $20.0 million

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

STRATA Skin Sciences, Inc. amended Amended and Restated Warrant Agreement with MidCap Funding XXVII Trust valued at Amended and restated warrant agreement to purchase shares of common stock. (effective 2023-06-30).

Action: amendment
Counterparty: MidCap Funding XXVII Trust
Value: Amended and restated warrant agreement to purchase shares of common stock.
Effective: 2023-06-30

Exact text from the filing

(b) the Amended and Restated Warrant Agreement (the “A&R Warrant”) with MidCap Funding XXVII Trust (together with any registered holder from time to time or any holder of the shares issuable or issued upon the exercise or conversion of the Warrant, the “Warrantholder”), which amended and restated the warrant agreement to purchase shares of the common stock of the Company, dated as of September 30, 2021

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

STRATA Skin Sciences, Inc. amended Amendment No. 3 to Credit and Security Agreement with MidCap Financial Trust valued at Amendment to Credit and Security Agreement, providing for senior secured term loan facility of $20.0 (effective 2023-06-30).

Action: amendment
Agreement: credit facility
Counterparty: MidCap Financial Trust
Value: Amendment to Credit and Security Agreement, providing for senior secured term loan facility of $20.0
Effective: 2023-06-30

Exact text from the filing

On June 30, 2023, STRATA Skin Sciences, Inc. (the “Company”) entered into (a) the Amendment No. 3 to Credit and Security Agreement (the “Amendment”) among MidCap Financial Trust (“MidCap”), as administrative agent, and the lenders identified therein, which amended the Credit and Security Agreement, dated as of September 30, 2021, as amended January 10, 2022 and September 6, 2022 (as amended by the Amendment, the “MidCap Credit Agreement”)

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

STRATA Skin Sciences, Inc. amended Amended and Restated Registration Rights Agreement with MidCap Funding XXVII Trust valued at Amended and restated registration rights agreement. (effective 2023-06-30).

Action: amendment
Counterparty: MidCap Funding XXVII Trust
Value: Amended and restated registration rights agreement.
Effective: 2023-06-30

Exact text from the filing

(c) the Amended and Restated Registration Rights Agreement (the “A&R Registration Rights Agreement”) with the Warrantholder, which amended and restated the registration rights agreement, dated as of September 30, 2021, with the Warrantholder

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

STRATA Skin Sciences, Inc. entered into Fee Letter Agreement with MidCap Financial Trust valued at Letter agreement with MidCap as agent. (effective 2023-06-30).

Action: entry
Counterparty: MidCap Financial Trust
Value: Letter agreement with MidCap as agent.
Effective: 2023-06-30

Exact text from the filing

Agreement (the “Amendment”) among MidCap Financial Trust (“MidCap”), as administrative agent, and the lenders identified therein, which amended the Credit and Security Agreement, dated as of September 30, 2021, as amended January 10, 2022 and

View on SEC.gov

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STRATA Skin Sciences, Inc. filing history →

Source: SEC EDGAR

accession 0001140361-23-033456

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