Establishment Labs Holdings has entered into a $300 million senior secured term loan facility with funds managed by Oaktree Capital Management, refinancing its existing debt and providing additional capital for future strategic growth initiatives. The facility is structured in two tranches: a $265 million tranche used to refinance existing indebtedness with a maturity through 2031, and a $35 million tranche available for future growth initiatives. The loan carries a fixed interest rate with a potential step-down based on leverage targets, no amortization prior to maturity, and flexible prepayment capability, consistent with the terms of the company’s prior credit agreement with updates reflecting current market terms.
Establishment Labs is a global medical device company dedicated to improving women’s health and wellness, principally in breast aesthetics and reconstruction, and is best known for its Motiva implants, which have been delivered to plastic and reconstructive surgeons in over 100 countries since the product’s launch in 2010. The company says its business is accelerating and that it expects to reach positive free cash flow in the second half of this year. The refinancing extends the company’s debt maturity while enhancing its financial flexibility to invest in ongoing operations and pursue future strategic opportunities.
Oaktree is a leading provider of debt and royalty financing for the global life sciences industry, and has committed more than $6 billion across 44 investments in healthcare companies since 2020. The firm’s continued support of Establishment Labs through this refinancing follows four years of partnership during which Oaktree says it has witnessed the company’s commitment to strong fundamentals and sustainable growth, supported by important innovation in breast aesthetics and reconstruction and the rapid US market expansion of Motiva implants. The facility will be secured by a first-priority lien on substantially all assets of the company.
In addition to its core Motiva implant portfolio, Establishment Labs offers a range of adjacent products and platforms, including Mia Femtech for minimally invasive breast harmonization, Preservé for primary breast augmentation and mastopexy augmentation, the Vivio tissue expander for breast reconstruction, and Zensor, an RFID technology platform for safely identifying implantable devices from outside the body. The company manufactures at two facilities in Costa Rica that comply with applicable regulatory standards under ISO13485:2024 and FDA 21 CFR 820, and its portfolio is supported by over 200 patent applications in 20 separate patent families and over 100 scientific and clinical studies published in peer-reviewed journals.
KEY QUOTES:
“This strengthens our capital structure by extending our maturity and enhancing our financial flexibility. The initial tranche fully refinances our existing debt until 2031 and the additional capacity provides flexibility to support future strategic initiatives. Our business continues to accelerate, and we expect to be positive free cash flow in the second half of this year with substantial growth ahead of us.”
Sandra Harris, Chief Financial Officer, Establishment Labs
“Over the past four years, we have witnessed the company’s commitment to strong fundamentals and sustainable growth, supported by important innovation in breast aesthetics and reconstruction and the rapid market expansion of Motiva implants in the United States.”
Aman Kumar, Co-Portfolio Manager, Oaktree Life Sciences Lending
