JWCA advises Endologix on its $170 million credit facility with Deerfield Management
april 2017 | read press release
Transaction Background
J. Wood Capital Advisors was hired by Endologix to optimize its capital structure in light of upcoming debt maturities and restrictions imposed by its existing credit facility. Endologix had the following objectives:
- Refinance convertible due 2018
- Raise new capital to continue product development
JWCA developed a capital structure roadmap for Endologix, evaluating all options available to the Company through capital markets and private financing. JWCA recommended, and Endologix agreed, that a secured credit facility was the best source of new financing.
JWCA then led a search for private lenders, leveraging resources and contacts to locate five candidate lenders whose profiles best matched Endologix. Upon obtaining terms from the investors, JWCA:
- Developed analytics to compare all facets of terms on offer
- Drove competitive dynamics to obtain more Company-friendly offers
- Negotiated additional asset-based revolver with Deerfield, providing the Company the means to replace rather than augment its existing credit facility
Results
- Saved the Company significant financing costs through lower interest costs, lower fees, fewer warrants, and longer terms
- Obtained company-friendly covenants which provided more flexibility to raise new financing or pursue strategic options going forward
- Endologix used term loan proceeds to repurchase $53 million of convertible due 2018, extending a large portion of its liability tower by 5 years while preserving cash and minimizing dilution