AtriCure Reports Material Agreement Changes & New Financial Obligation

TL;DR

**AtriCure just made and broke a big deal, plus took on new debt; watch for impact on financials.**

AI Summary

AtriCure, Inc. filed an 8-K on January 8, 2024, reporting an event that occurred on January 5, 2024, concerning the entry into and termination of a material definitive agreement, as well as the creation of a direct financial obligation. This filing indicates significant changes in the company's financial and operational commitments, which could impact its future earnings and financial health. Investors should pay close attention to the details of these agreements as they could affect the company's valuation and stock performance.

Why It Matters

This filing signals important shifts in AtriCure's financial commitments and operational strategy, which could directly influence its profitability and risk profile for investors.

Risk Assessment

Risk Level: medium — The simultaneous entry into and termination of a material definitive agreement, coupled with a new financial obligation, introduces uncertainty regarding the company's strategic direction and financial stability.

Analyst Insight

A smart investor would closely monitor AtriCure's subsequent filings and earnings calls for specific details on the material agreements and financial obligations to assess their long-term impact on the company's financial health and strategic direction.

Key Numbers

• 0001323885 — Central Index Key (CIK) (Unique identifier for AtriCure, Inc. with the SEC)
• 20240105 — Conformed Period of Report (The date of the earliest event reported in the filing)
• 20240108 — Filed As Of Date (The date the 8-K was officially filed with the SEC)
• 34-1940305 — IRS Employer Identification No. (Tax identification number for AtriCure, Inc.)

Key Players & Entities

• AtriCure, Inc. (company) — the registrant filing the 8-K
• January 5, 2024 (date) — date of the earliest event reported
• January 8, 2024 (date) — date the 8-K was filed
• 000-51470 (dollar_amount) — Commission File Number
• ATRC (company) — trading symbol for AtriCure, Inc.

Forward-Looking Statements

• AtriCure's stock (ATRC) may experience short-term volatility due to investor uncertainty regarding the implications of the material agreement changes and new financial obligations. (ATRC) — medium confidence, target: Q1 2024
• The company will likely provide more detailed explanations of the material definitive agreements and financial obligations in its next quarterly or annual report. (AtriCure, Inc.) — high confidence, target: Q1 2024 Earnings Report

FAQ

Key Financial Figures

• $125 million — " ABL Facility ") in an amount of up to $125 million. Borrowers may, at their option, and su
• $40 million — se in the revolving commitment by up to $40 million (not to exceed a total of $165 million)
• $165 million — o $40 million (not to exceed a total of $165 million) by obtaining additional commitments fr
• $5 million — on of the ABL Facility not in excess of $5 million is available for the issuance of letter

Filing Documents

• d692835d8k.htm (8-K) — 32KB
• d692835dex101.htm (EX-10.1) — 894KB
• d692835dex991.htm (EX-99.1) — 9KB
• g692835g12n09.jpg (GRAPHIC) — 6KB
• g692835g26r29.jpg (GRAPHIC) — 6KB
• 0001193125-24-003922.txt ( ) — 1298KB
• atrc-20240105.xsd (EX-101.SCH) — 3KB
• atrc-20240105_lab.xml (EX-101.LAB) — 17KB
• atrc-20240105_pre.xml (EX-101.PRE) — 11KB
• d692835d8k_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On January 5, 2024 (the " Closing Date "), AtriCure, Inc. (the " Company ") and its wholly owned subsidiary, AtriCure, LLC (together with the Company, the " Borrowers "), entered into an asset-based credit agreement (the " Credit Agreement ") among the Borrowers, JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the " Administrative Agent "), JPMorgan Chase Bank, N.A. ("JPMCB") and Silicon Valley Bank, a Division of First-Citizen Bank & Trust Company ("SVB"), as Joint Lead Arrangers and Joint Bookrunners, and the lenders party thereto ("Lenders"). The Credit Agreement provides for an asset-based three-year revolving credit facility (the " ABL Facility ") in an amount of up to $125 million. Borrowers may, at their option, and subject to customary conditions, request an increase in the revolving commitment by up to $40 million (not to exceed a total of $165 million) by obtaining additional commitments from one or more Lenders or with the consent of JPMCB. A portion of the ABL Facility not in excess of $5 million is available for the issuance of letters of credit in U.S. dollars by JPMCB or other financial institutions. The Administrative Agent, in its sole discretion, may create swingline loans (the " Swingline Loans ") by advancing to the Borrowers, on behalf of the Lenders, floating rate revolving loans requested by Borrowers. Any such Swingline Loans will reduce availability under the ABL Facility on a dollar-for-dollar basis. The proceeds of the ABL Facility will be used to finance the Company's working capital needs and for general corporate purposes. Proceeds also were used to refinance the Company's indebtedness under the Loan and Security Agreement dated as of February 23, 2018, by and among SVB, the Company and certain subsidiaries (as amended, the " SVB Facility "). The SVB Facility terminated on the Closing Date. The ABL Facility is secured by a first priority perfected secur

02. Termination of a Material Definitive Agreement

Item 1.02. Termination of a Material Definitive Agreement. The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. On January 8, 2024, AtriCure issued a press release announcing its preliminary financial results for the fourth quarter and full year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference. The information in Item 2.02 of this Form 8-K and in the press release attached as Exhibit 99.1 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Form 8-K and Exhibit 99.1 shall not be incorporated by reference in any filing (whether made before or after the date hereof) or any other document under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in any such filing or document.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits No. Description 10.1 JPMorgan Credit Agreement* 99.1 Press Release dated January 8, 2024 104 Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document. * Certain of the exhibits and schedules to these exhibits have been omitted in accordance with Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish copies of any of the omitted exhibits and schedules to the SEC upon its request.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ATRICURE, INC. Dated: January 8, 2024 By: /s/ Angela L. Wirick Angela L. Wirick Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR