Non-Dilutive Financing Provides Comprehensive Solution to Address Debt Maturities and Provide Flexibility to Further Optimize Capital Structure
ATLANTA, Jan. 18, 2024 /PRNewswire/ -- Artivion, Inc. (NYSE: AORT), a leading cardiac and vascular surgery company focused on aortic disease, today announced the closing of a comprehensive, non- dilutive definitive credit agreement with Ares Management Credit funds for $350 million of senior secured, interest-only, credit facilities with 6-year maturities.
The credit facilities include an initial $190 million term loan, a $60 million revolving credit facility, and an additional $100 million in unfunded delayed draw term loan commitments that may be drawn to refinance the Company's convertible bonds at any time on or prior to the maturity of the convertible bonds, subject to customary conditions. The initial $190 million term loan and $30 million from the revolving credit facility were drawn at close to retire the Company's existing senior secured credit facilities and pay related fees and expenses. The option to draw the additional $100 million of term loans provides the Company with a financing source to efficiently address the maturity date of the convertible bonds at any time at or prior to maturity.
"This agreement represents a comprehensive approach to optimize our capital structure as we prepare to enter a new phase of profitable growth," said Pat Mackin, Chairman, President, and Chief Executive Officer of Artivion. "The conviction we have in our business outlook, which has been strengthened by our recent financial performance and clinical data readouts, has never been greater and we look forward to further advancing our strategies to deliver significant shareholder value."
Further details regarding the new credit agreement are included in the Company's Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2024.
About Artivion, Inc.
Headquartered in suburban Atlanta, Georgia, Artivion, Inc. is a medical device company focused on developing simple, elegant solutions that address cardiac and vascular surgeons' most difficult challenges in treating patients with aortic diseases. Artivion's four major groups of products include: aortic stent grafts, surgical sealants, On X mechanical heart valves, and implantable cardiac and vascular human tissues. Artivion markets and sells products in more than 100 countries worldwide. For additional information about Artivion, visit our website, www.artivion.com.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2023, Ares Management Corporation's global platform had approximately $395 billion of assets under management, with approximately 2,800 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
Forward Looking Statements
Statements made in this press release that look forward in time or that express management's beliefs, expectations, or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made. These statements include our expectations regarding the repurchase or repayment of our convertible bonds at or prior to maturity and our beliefs that our new credit agreement represents a comprehensive approach to optimize our capital structure, we are entering a new phase of profitable growth, our business outlook, particularly in light of our recent financial performance and clinical data results, has never been greater, and we can further advance our strategies to deliver significant shareholder value. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations, including, but not limited to, that the benefits anticipated from the Ascyrus Medical LLC transaction and Endospan agreements may not be achieved at all or at the levels we had originally anticipated. These risks and uncertainties include the risk factors detailed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. Artivion does not undertake to update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Lance A. Berry
Executive Vice President &
Chief Financial Officer
Gilmartin Group LLC
Brian Johnston / Laine Morgan
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SOURCE Artivion, Inc.