Apyx Medical Corporation Announces New Debt Facility with Perceptive Advisors

Apyx Medical Corporation (NASDAQ:APYX) (the “Company”), the manufacturer of a proprietary helium plasma and radiofrequency technology marketed and sold as Renuvion, today announced that the Company and its subsidiaries have entered into a new, five-year credit agreement with Perceptive Credit Holdings IV, LP (“Perceptive”), an affiliate of Perceptive Advisors. The Perceptive Credit Agreement provides for a facility of up to $45 million in senior secured term loans, with an initial loan of $37.5 million fully drawn at closing.

“We are excited to announce this new debt facility with Perceptive Advisors,” said Charlie Goodwin, President and Chief Executive Officer. “This new facility provides Apyx Medical with access to additional capital – and at more attractive terms overall – than our prior agreement, significantly strengthening our balance sheet and enhancing our financial flexibility.”

“We are excited to partner with Apyx Medical and believe that Renuvion will be a formidable product in the market as the company executes on its strategy,” said Sam Chawla, Portfolio Manager of Perceptive Advisors.

The Perceptive credit facility matures on November 8, 2028 and includes an initial loan of $37.5 million and a delayed draw loan of $7.5 million. The initial loan of $37.5 million was fully funded on November 8, 2023, with approximately $11.0 million of the proceeds used to satisfy all obligations under the Company’s MidCap credit agreement, in addition to approximately $2.5 million of transaction fees and other expenses incurred in connection with the Perceptive Credit Agreement. The delayed draw loan can be drawn at the Company’s option until December 31, 2024, upon satisfaction of certain conditions and covenants, including, but not limited to, the achievement of a minimum revenue target.

The initial loan and delayed draw loan bear interest at a floating rate based on one-month SOFR, subject to a floor of 5.0%, plus 7.0%. The Perceptive Credit Agreement provides for 48 months of interest-only payments. Subsequent to the interest-only period, the outstanding principal amount of the loans is repayable in monthly payments of 3.0% of the outstanding balance on the payment date. All remaining outstanding principal, together with all accrued and unpaid interest, is due at maturity. The loans may be voluntarily prepaid in full, or in part, at any time, subject to terms and conditions set forth in the Perceptive Credit Agreement. Additionally, the loans are subject to mandatory prepayment obligations, pursuant to the terms of the Perceptive Credit Agreement. The obligations under the Perceptive credit facility are secured by first priority liens on substantially all of the assets of the Company.