Apollo Endosurgery Extends Maturity Date of Senior Secured Term Loan and Convertible Notes

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AUSTIN, TX / ACCESSWIRE / December 7, 2020 / Apollo Endosurgery, Inc. (“Apollo”) (NASDAQ: APEN), a world leader in less invasive medical devices for gastrointestinal and bariatric procedures, today announced an agreement with Solar Capital Ltd. to extend the interest period and maturity date of their existing term loan. In addition, the Company and the holders of 99.25% of the unpaid principal of its 6% convertible notes due 2024 have also agreed to an extension of the maturity date of such notes.

Under the Solar Amendment, which came into effect on December 4, 2020, the interest-only period and maturity date of the term loan are extended by 12 months. The interest-only period is extended from March 2021 to March 2022 and the maturity date is extended from September 1, 2023 to September 1, 2024. In addition, the amendment will automatically extend the interest-only period and the maturity date six months if a specific revenue milestone is reached by December 31, 2021. The extension of the interest-only period improves the Company’s liquidity in 2021 by approximately $ 12 million by deferring principal payments that were normally scheduled to start in March 2021.

As a result of the extension, Solar will receive additional final and exit commissions due at the end of the loan and the prepayment charge has been reset on the effective date of the extension. Interest rates and minimum liquidity requirements remain unchanged after the extension.

The amendment to the convertible notes extends the maturity date of 99.25% of the outstanding principal of the 6% convertible notes of the Company from August 12, 2024 to August 12, 2026. No other condition of the convertible notes was affected by the modification.

“The solar expansion announced today significantly strengthens our liquidity as we continue to execute plans to meet the goal of generating positive cash flow from operations and reduce the risk that we will require additional funding. before reaching this goal, ”said Stefanie Cavanaugh, Chief Financial Officer.

About Apollo Endosurgery, Inc.
Apollo Endosurgery, Inc. is a medical technology company specializing in less invasive therapies to treat a variety of gastrointestinal conditions, ranging from repair of gastrointestinal defects to interventional treatment of obesity. Apollo’s device-based therapies are an alternative to invasive surgical procedures, reducing complication rates and overall healthcare costs. Apollo’s products are now available in more than 75 countries and include the OverStitch ™ Endoscopic Suture System, OverStitch Sx ™ Endoscopic Suture System and ORBERA® Intragastric Balloon.

Apollo’s common stock is traded on the NASDAQ Global Market under the symbol “APEN”. For more information on Apollo Endosurgery, please visit: www.apolloendo.com.

Caution regarding forward-looking statements
Certain statements contained in this press release are forward-looking statements subject to risks and uncertainties which could cause results to differ materially from expectations. In addition, there is uncertainty as to the spread of the COVID-19 virus and the impact it could have on the operations of the Company, the demand for the products of the Company, the liquidity position of the Company, global supply chains and economic activity in general. Important factors that could cause actual results to differ materially include: advancement of Apollo products; development of enhancements to existing Apollo products and technologies; market acceptance of Apollo’s products; execution of our gross margin improvement projects; the ability to collect future payments from ReShape; statements relating to the availability of liquidity for Apollo’s future operations and debt service obligations; statements relating to the potential need for future equity financing; and Apollo’s ability to support adoption of its products and expand its product portfolio as well as other factors detailed in Apollo’s periodic reports filed with the Securities and Exchange Commission, or SEC, including its Form 10-K for the fiscal year ended December 31, 2019 and its Form 10-Q for the period ending September 30, 2020. Copies of reports filed with the SEC are posted on the Apollo website and are available free from Apollo. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, Apollo disclaims any obligation to update these forward-looking statements to reflect events or developments. future circumstances.

Disclosure Information
Apollo uses the Investor Relations section of its website as a means of complying with its disclosure obligations under the FD Regulation. Accordingly, we recommend that investors monitor the Apollo Investor Relations website in addition to following Apollo press releases, SEC filings, public conference calls and webcasts.

Contact:
Apollo Endosurgery, Inc.
Stefanie Cavanaugh, 512-279-5100
investor- [email protected]

Darrow Associates Investor Relations
Matt Kreps, 214-597-8200
[email protected]

THE SOURCE: Apollo Endosurgery, Inc.

See the source version on accesswire.com:
https://www.accesswire.com/619611/Apollo-Endosurgery-Extends-Maturity-Date-on-Senior-Secured-Term-Loan-and-Convertible-Notes


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