Strata Skin Sciences obtains waiver of Q4 2023 covenant breach, amends credit facility

STRATA Skin Sciences, Inc.

Received limited waiver from MidCap for December 31, 2023 minimum net revenue covenant default.
New minimum net revenue thresholds for 2024: $29.0M (Q1), $29.25M (Q2), $29.5M (Q3), $30.0M (Q4).
Exit fee set at 4.0% of total principal borrowed; partial prepayment triggers proportionate fee.
Amended fee letter includes origination fees on future Credit Facility #3 draws at 0.50%.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

STRATA Skin Sciences, Inc. entered into Amendment No. 4 to Credit and Security Agreement with MidCap Financial Trust valued at Amendment to credit agreement revising minimum net revenue financial covenants to $29.0M, $29.25M, $ (effective 2024-02-20).

Action: entry
Agreement: credit facility
Counterparty: MidCap Financial Trust
Value: Amendment to credit agreement revising minimum net revenue financial covenants to $29.0M, $29.25M, $
Effective: 2024-02-20

Exact text from the filing

On February 20, 2024, STRATA Skin Sciences, Inc. (the “Company”) entered into (a) the Amendment No. 4 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, September 6, 2022 and June 30, 2023 (as amended by the Amendment, the “MidCap Credit Agreement”), and (b) a second amended and restated letter agreement (the “Second Amended and Restated Fee Letter Agreement”) with MidCap, as agent.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

STRATA Skin Sciences, Inc. entered into Second Amended and Restated Fee Letter Agreement with MidCap Financial Trust valued at Fee letter agreement setting forth origination fees and exit fees related to the MidCap Credit Agree (effective 2024-02-20).

Action: entry
Agreement: credit facility
Counterparty: MidCap Financial Trust
Value: Fee letter agreement setting forth origination fees and exit fees related to the MidCap Credit Agree
Effective: 2024-02-20

Exact text from the filing

On February 20, 2024, STRATA Skin Sciences, Inc. (the “Company”) entered into (a) the Amendment No. 4 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, September 6, 2022 and June 30, 2023 (as amended by the Amendment, the “MidCap Credit Agreement”), and (b) a second amended and restated letter agreement (the “Second Amended and Restated Fee Letter Agreement”) with MidCap, as agent.

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STRATA Skin Sciences, Inc. filing history →

Source: SEC EDGAR

accession 0001140361-24-008801

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