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Regenerative medicine company Organogenesis rallies after announcing $100M credit facility

The proceeds from the term loan and revolving credit facility will be used for general corporate purposes and the repayment of the company's credit facility and a lease
Wound treatment
The company offers bioactive and acellular biomaterials products in advanced wound care

Organogenesis Holdings Inc (NASDAQ:ORGO) advanced Friday after announcing a $100 million credit facility.

The credit deal with Silicon Valley Bank, the lead agent, and MidCap Financial consists of a $60 million term loan facility and a $40 million revolving credit facility.  

Shares of the regenerative medicine company climbed 3.2% to $9.82 in Friday's Nasdaq trading.

READ: True Leaf Medicine grows footprint with new brand identity, expands pet product line

The proceeds from the term loan and revolving credit facility will be used for general corporate purposes, the repayment of the company's credit facility and a lease with Eastward Capital Partners.

The agreement requires the achievement of certain financial milestones in order to draw the final $20 million of the term loan facility. 

"Silicon Valley Bank has been a great partner to Organogenesis, and we appreciate their continued support with this new credit agreement," Organogenesis Chief Financial Officer Tim Cunningham said in a statement. "This new term loan and revolving credit facility enhances our balance sheet and allows us to continue to execute our strategic growth objectives."

Based in Canton, Massachusetts, the company offers bioactive and acellular biomaterials products in advanced wound care and surgical biologics, including orthopedics and spine.

–This story has been updated to give the latest stock price–

Contact Dennis Fitzgerald at [email protected]

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