22 February 2023 - - US-based Apyx Medical Corp. (NASDAQ: APYX), the manufacturer of a proprietary helium plasma and radiofrequency technology marketed and sold as Renuvion, said that it and its subsidiaries have entered into a new, five-year secured credit facility with MidCap Financial, the company said.

The credit agreement provides for an up to USD 35m facility consisting of senior, secured term loans of up to USD 25m and a revolving facility of up to USD 10m.

The MidCap Financial credit facility matures on February 1, 2028 and includes Term Loan of an initial USD 10m tranche received at closing and additional tranches of USD 5m and USD 10m that can be drawn at the company's option upon satisfaction of certain conditions and covenants, including, but not limited to, reaching certain net revenue thresholds by December 31, 2023 and September 30, 2024, respectively.

The Term Loan provides for at least 24 months of interest-only payments, which can be extended to 36 months upon satisfaction of certain conditions.

Availability to draw on the five-year, USD 10m revolving credit facility is based primarily on the company's inventory and receivable balances.

The credit facility bears interest at an annual rate equal to the Adjusted Term SOFR, subject to a floor of 2.50%, plus 7.35% for the Term Loan and 4.00% for the Revolver.

"Adjusted Term SOFR" means the per annum rate equal to the sum of the 30-day forward-looking secured overnight financing rate, as published by CME Group Benchmark Administration Ltd. from time to time, plus 0.10% reset monthly.

The obligations under the MidCap Financial credit facility are secured by a lien on substantially all of the assets of the company.

The company also issued warrants with an exercise price of USD 3.40 per share to purchase up to 250,000 shares of its common stock to MidCap.

Piper Sandler served as financial advisor to the company on the transaction. Additional detail regarding the foregoing financing is set forth in the company's Current Report on form 8-K, to be filed with the US Securities and Exchange Commission.

Apyx Medical Corp. is an advanced energy technology company with a passion for elevating people's lives through innovative products, including its Helium Plasma Technology products marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market.

Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results.

The company also leverages its deep expertise and decades of experience in unique waveforms through OEM agreements with other medical device manufacturers.

MidCap Financial is a middle-market focused, specialty finance firm that provides senior debt solutions to companies across all industries.

As of December 31, 2022, MidCap Financial provides administrative or other services for over USD 45.9bn of commitments.

MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, Inc, pursuant to an investment management agreement.

Apollo had assets under management of approximately USD 548bn as of December 31, 2022, in credit, private equity and real assets funds.