Shoulder Innovations Secures $50M Credit Facilities with 5% Rate Floor
SI•Shoulder Innovations secured up to $50 million in new credit facilities, comprising a $15 million term loan refinancing existing debt and a $30 million undrawn line with a $5 million accordion feature at rates floored at 5%. The term loan is interest-only until June 2029 and matures in June 2031.
1. New Credit Facilities
Shoulder Innovations closed two credit facilities totaling up to $50 million with Stifel Venture Banking. The package includes a fully funded $15 million term loan to refinance existing debt and a $30 million undrawn line of credit, plus a $5 million accordion option subject to conditions.
2. Improved Debt Economics
The term loan carries an annual interest rate equal to the greater of 0.75% below the prime rate or 5%, while the line of credit is priced at the greater of the prime rate or 5%. At close, these facilities do not increase overall indebtedness and include no warrants.
3. Maturities and Features
Interest-only payments apply on the term loan through June 30, 2029, with maturity in June 2031. The undrawn line of credit matures in June 2029, providing additional working capital flexibility without immediate draw requirements.
