Loan & DebtJul 14, 2026, 04:07 PM
Kestra Secures $150M Term Loan Facility with Pharmakon Advisors
AI Summary
Kestra Medical Technologies, a wearable medical device company, announced a new five-year term loan facility with funds managed by Pharmakon Advisors, LP. The non-dilutive financing includes an initial $75 million tranche, which was used to retire an existing $45 million term loan, along with additional tranches totaling up to $125 million and an uncommitted $50 million for acquisitions. CEO Brian Webster stated that this financing strengthens the balance sheet, reduces the cost of capital, and provides significant financial flexibility to support growth strategies.
Key Highlights
- Kestra secured a new five-year term loan facility with Pharmakon Advisors.
- A $75 million tranche was funded at closing, partially retiring an existing $45 million term loan.
- An additional $25 million tranche is available at Kestra's option through July 2027.
- A $50 million tranche is available through June 2028, contingent on $150 million trailing 12-month revenue.
- An uncommitted $50 million tranche is available for acquisitions, subject to Pharmakon's consent.
- The loan provides 48 months of interest-only payments, extendable by 12 months.
- Interest rate is 3-month SOFR plus 5.5%, with a 3.25% SOFR floor.
- Total liquidity is approximately $357 million, including unused availability.
Price Impact
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