MIMEDX Reports Material Agreement Changes & New Financial Obligation

TL;DR

**MIMEDX just shook up its contracts and took on new debt, watch for impact on future earnings.**

AI Summary

MIMEDX GROUP, INC. filed an 8-K on January 22, 2024, reporting events from January 19, 2024, concerning the entry into and termination of a material definitive agreement, and the creation of a direct financial obligation. This indicates significant changes in the company's contractual relationships and financial commitments. For investors, this matters because such changes can impact future revenue, expenses, and overall financial health, potentially affecting the stock's valuation.

Why It Matters

This filing signals important shifts in MIMEDX's business operations and financial structure, which could influence its future profitability and risk profile.

Risk Assessment

Risk Level: medium — The filing indicates both entry into and termination of material agreements, alongside new financial obligations, which introduces uncertainty regarding the net impact on the company's financial position.

Analyst Insight

Investors should investigate the details of the material agreements entered into and terminated, as well as the nature and size of the new financial obligation, to understand the potential impact on MIMEDX's future financial performance.

Key Players & Entities

• MIMEDX GROUP, INC. (company) — the registrant filing the 8-K
• January 19, 2024 (date) — date of the earliest event reported
• January 22, 2024 (date) — date the 8-K was filed
• 001-35887 (other) — Commission File Number
• MDXG (other) — Trading Symbol for Common Stock

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share MDXG The Nasdaq
• $95.0 million — an aggregate principal amount of up to $95.0 million consisting of: (i) a $75.0 million seni
• $75.0 million — p to $95.0 million consisting of: (i) a $75.0 million senior secured revolving credit facilit
• $10.0 million — the "Revolving Credit Facility") with a $10.0 million letter of credit sublimit and a $10.0 m
• $20.0 million — ion swingline loan sublimit, and (ii) a $20.0 million senior secured term loan facility (the
• $50.0 million — ipal amount equal to the greater of (i) $50.0 million and (ii) 1.00 times the Consolidated EB
• $30.0 million — January 19, 2024, the Company borrowed $30.0 million under the Revolving Credit Facility and

Filing Documents

• d726571d8k.htm (8-K) — 33KB
• d726571dex991.htm (EX-99.1) — 10KB
• g726571g0120091623473.jpg (GRAPHIC) — 2KB
• 0001193125-24-011707.txt ( ) — 169KB
• mdxg-20240119.xsd (EX-101.SCH) — 3KB
• mdxg-20240119_lab.xml (EX-101.LAB) — 17KB
• mdxg-20240119_pre.xml (EX-101.PRE) — 11KB
• d726571d8k_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement. On January 19, 2024, MiMedx Group, Inc. (the "Company") entered into a Credit Agreement (the "Credit Agreement") with the lenders party thereto (the "Lenders") and Citizens Bank, N.A., as administrative agent (the "Agent"). All obligations of the Company under the Credit Agreement are guaranteed by certain of the Company's subsidiaries (collectively, the "Guarantors") and secured by substantially all of the assets of the Company and the Guarantors pursuant to a customary security agreement. The Credit Agreement provides for senior secured credit facilities in an aggregate principal amount of up to $95.0 million consisting of: (i) a $75.0 million senior secured revolving credit facility (the "Revolving Credit Facility") with a $10.0 million letter of credit sublimit and a $10.0 million swingline loan sublimit, and (ii) a $20.0 million senior secured term loan facility (the "Term Loan Facility" and, together with the Revolving Credit Facility, the "Credit Facilities"). Subject to the terms of the Credit Agreement, the Company has the option to obtain one or more incremental term loan facilities and/or increase the commitments under the Revolving Credit Facility in an aggregate principal amount equal to the greater of (i) $50.0 million and (ii) 1.00 times the Consolidated EBITDA (as defined in the Credit Agreement), each subject to the existing or any new lenders' election to extend additional term loans or revolving commitments. All obligations are required to be paid in full on January 19, 2029 (the "Maturity Date"). At the Company's option, borrowings under the Credit Agreement (other than any swingline loan) will bear interest at rate per annum equal to (i) the Alternate Base Rate (as defined in the Credit Agreement), or (ii) a Term SOFR (as defined in the Credit Agreement), in each case plus an applicable margin ranging from 1.25% and 2.50% with respect to Alternate Base Rate borrowings and 2.25% and 3.5

02

Item 1.02 Termination of a Material Definitive Agreement. With respect to the termination of the Hayfin Credit Agreement, the information set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. With respect to the Credit Agreement, the information set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.

01

Item 7.01 Regulation FD Disclosure. On January 22, 2024, the Company issued a press release regarding the entry into the Credit Agreement. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description of Exhibit 99.1 Press Release dated January 22, 2024. 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MIMEDX GROUP, INC. Date: January 22, 2024 By: /s/ Doug Rice Doug Rice Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR