Benzinga | Dec 10, 2020 06:32AM EST

Venus Concept Announces Debt Refinancing And Amendment Of Its Existing Revolving Credit Facility With City National Bank Of Florida

TORONTO, Dec. 10, 2020 (GLOBE NEWSWIRE) -- Venus Concept Inc. ("Venus Concept" or the "Company") (NASDAQ:VERO), a global medical aesthetic technology leader, announced today that it has amended its existing revolving credit facility with City National Bank of Florida ("CNB") and successfully refinanced its long-term debt obligations. Specifically, the Company secured a new loan with CNB in the aggregate amount of $50.0 million as part of the Main Street Priority Loan Facility established by the Board of Governors of the Federal Reserve System Section 13(3) of the Federal Reserve Act. The loan has a term of five years and bears interest at an annual rate of LIBOR plus 3%. A portion of the proceeds were used to pay down $3.2 million of the Company's revolving line of credit with CNB. The Company also entered into agreements with Madryn Health Partners, LP (Madryn) and Madryn Health Partners (Cayman Master), LP (collectively, "Madryn"), whereby the Company repaid $42.5 million of aggregate principal amount owed under the existing credit agreement with Madryn and issued 8% secured subordinated convertible notes to Madryn for an aggregate principal amount of $26.7 million to exchange and retire the remaining debt obligations owed to Madryn that would have matured in 2022. The convertible notes have a 5-year term and the interest rate on the convertible notes decreases to 6% on the third anniversary of the issuance. The notes are convertible at any time into shares of common stock of the Company at an initial conversion price of $3.25 per share, subject to adjustment.



"We are pleased to announce these significant enhancements to Venus Concept's balance sheet and financial condition, reducing our cost of debt from 9% to less than 5% based on current rates," said Domenic Della Penna, Chief Financial Officer of Venus Concept. "This new loan agreement allows us to refinance our long-term debt obligations which provides us with greater flexibility to support the execution of our growth strategy."

Additional information regarding these loan and securities agreements are available in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 10, 2020.