Triangle life science firm Bioventus seeks to raise $415M in debt

DURHAM – Bioventus will soon seek to raise $415 million through an offering of senior notes that would come due in 2027, according to a statement from the company that coincided with the company’s first quarter earnings report.

In a second statement, the company reported that its unaudited net sales during the first quarter of 2022 were expected to be $116.5 million to $118.5 million, a growth of between 42% to 45% compared to the prior year.

Earlier this year, the company received FDA authorization for the newest edition of its StimRouter Neuromodulation System to treat chronic peripheral nerve pain, according to prior reporting that published on WRAL TechWire.

The company also completed the acquisition of an Israeli firm, CartiHeal, in which Bioventus already held an ownership stake. That deal could be worth up to $450 million.

Bioventus completes acquisition of Israeli firm CartiHeal in deal worth up to $450M

Adding $415M in debt

That’s the context in which Bioventus is set to raise an additional $415 million through the offering of debt via senior notes, announced Tuesday.

“Concurrently with this offering, the Issuer intends to enter into an amendment to its Amended and Restated Credit Facilities (the “Third Amendment to the Credit Agreement”), pursuant to which, the Amended and Restated Credit Facilities will be modified to, among other things, permit the incurrence of the notes and the consummation of the CartiHeal Acquisition, modify the financial covenant, modify the capacity for additional unsecured indebtedness and add additional leverage-based step ups in the interest rate applicable to the loans,” today’s statement reads.

The company reported a loss of between $19.4 million and $19 million for the first quarter of 2022, which company CEO Ken Reali described in a statement as a “strong performance during the first quarter amid a challenging macro environment.”