Xtant Medical announces the closing of its debt restructuring

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BELGRADE, MT, Oct 01, 2020 (GLOBE NEWSWIRE) – Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal disorders, announced today have finalized its previously announced debt restructuring operation.

The main objective of the restructuring was to improve Xtant’s capital structure by reducing its outstanding debt, which the Company believes will facilitate future access to capital markets to invest in its growth initiatives and comply again to NYSE American continuous listing standards.

“We are delighted to have completed this debt restructuring transaction, which significantly reduced Xtant’s total indebtedness to less than $ 16 million under our credit facility, lowered the cost of debt to more sustainable levels and allow us to focus on continuously improving the way the company operates. model and growth profile, ”said Sean Browne, President and CEO of Xtant Medical.

As part of the transaction, Xtant issued approximately 57.8 million common shares to lenders under its credit facility in exchange for approximately $ 40.8 million of the total principal amount outstanding on outstanding loans. under the Credit Facility, as well as, without duplication, approximately $ 21.1 million of the unpaid amount of PIK interest (as defined in the Credit Agreement) (such PIK loans and interest, referred to as “swap loans” ), plus all other accrued and unpaid interest on exchange loans outstanding at the closing date, at an exchange price of $ 1.07 per share.

Xtant and the lenders also amended the credit agreement to extinguish loans of an aggregate principal amount equal to the outstanding swap loans hereunder as well as all accrued and unpaid interest thereon, add loans with an aggregate principal amount equal to a portion of the prepayment charge payable therewith. with respect to the loan swap and swap the remaining portion of the prepayment charge for 0.9 million additional shares of its ordinary shares, reduce the amount of additional credit available under it to 5 million dollars, remove the financial liability from the revenue base and reduce the interest rate to an annual rate equal to the sum of (i) 7.00% plus (ii) the greater of (x) the LIBO rate ( as that term is defined in the credit agreement) and (y) 1.00%.

Following the completion of the debt restructuring transaction, OrbiMed Royalty Opportunities II, LP and ROS Acquisition Offshore LP, which are funds affiliated with OrbiMed Advisors LLC, hold, in total, approximately 94.5% of the common shares outstanding of Xtant and all other existing shareholders of Xtant own approximately 5.5% of the outstanding common shares. Under the terms of the previously announced restructuring and swap agreement between Xtant and the lenders, Xtant has agreed to launch a rights offering after the completion of the debt restructuring to allow Xtant shareholders to purchase shares. Xtant’s common stock at the same price per share as the $ 1.07 per share exchange price used in the debt restructuring.

About Xtant Medical Holdings, Inc.

Xtant Medical Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development and commercialization of a comprehensive portfolio of orthobiologic systems and spinal implants to facilitate spinal fusion in the complex procedures of the spine, deformities and degenerative. . Xtant employees are dedicated and talented, operating with the utmost integrity to serve our customers.

The symbols ™ and ® denote trademarks and registered trademarks of Xtant Medical Holdings, Inc. or its affiliates, registered as indicated in the United States and other countries. All other brands and trade names mentioned in this release are the property of their respective owners.

To warnArea declaration Regarding Forward-THEReading statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, which depend on or refer to future events or conditions, or which include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “continues”, “the future”, “,”, future dates. The forward-looking statements contained in this press release include the Company’s expectations regarding the effect and benefits of the Debt Restructuring Transaction and the resulting Rights Offer. The Company cautions that its forward-looking statements, by their nature, involve risks and uncertainties, and that actual results may differ materially depending on a variety of important factors, including, but not limited to: risks and uncertainties surrounding restructuring transactions, including, without limitation, the ability to restore compliance with NYSE American’s ongoing listing standards and maintain its listing, and the timing and success of the planned rights offer; the effect of the COVID-19 pandemic on the Company’s business, results of operations and financial condition; the Company’s future operating results and financial performance; the ability to increase or maintain income; the ability to remain competitive; the ability to innovate and develop new products; the ability to hire and retain qualified personnel; government and third party coverage and reimbursement for Company products; the ability to obtain and maintain regulatory approvals and comply with government regulations; the effect of product liability claims and other disputes to which the Company may be subject; the effect of product recalls and defects; the ability to obtain and protect the intellectual property and proprietary rights of the Company and to operate without infringing the rights of others; the ability to service the Company’s debt, comply with its covenants and access additional debt; the ability to secure additional funding and other factors. Additional risk factors are contained in the company’s annual report on Form 10-K for the year ended December 31, 2019, supplemented by subsequent information in the company’s quarterly report on Form 10-Q for the quarterly period closed on June 30, 2020 and in future quarterly reports on Form 10-Q and current reports on Form 8-K. Investors are encouraged to read the Company’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company does not undertake to publicly disclose any revisions to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required by law. All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by this cautionary statement.

Investor Relations Contact

David Carey
Lazar FINN
Phone. : 212-867-1762
Email: [email protected]


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