Bioventus Enters into a New $400 Million Senior Secured Credit Agreement Lowering Interest Expense and Providing Increased Liquidity

Rhea-AI Summary

Bioventus (Nasdaq: BVS) has secured a new $400 million Senior Secured Credit Agreement, comprising a $300 million term loan and a $100 million revolving credit facility, maturing on July 31, 2030. The agreement represents significant improvements over their 2019 Credit Agreement, featuring a 75 basis point reduction in interest margin, generating over $2 million in annual interest savings.

Key enhancements include an increase in revolving credit facility from $40 million to $100 million, and a reduction in annual term loan amortization from 10% to 5%. The company used the proceeds to repay its outstanding $333 million loan balance under the 2019 agreement, utilizing the new term loan, $30 million from the revolving facility, and $3 million cash on hand.

Positive

• Interest margin reduced by 75 basis points, saving over $2 million annually
• Revolving credit facility increased from $40M to $100M, providing greater liquidity
• Term loan amortization reduced from 10% to 5% annually
• Extended maturity date to July 31, 2030, providing long-term stability

Negative

• Maintains significant debt level with $333M outstanding balance refinanced

Insights

Financial Analyst

Bioventus' new $400M credit deal lowers interest costs, enhances liquidity, and significantly improves financial flexibility.

Bioventus has successfully executed a comprehensive debt refinancing that delivers multiple financial advantages. The new $400 million credit agreement replaces their 2019 facility and brings three key improvements: a lower interest rate (75% basis point reduction generating $2+ million in annual interest savings), increased liquidity (revolving credit facility expanded from $40 million to $100 million), and reduced amortization (from 10% to 5% annually).

This refinancing demonstrates significant improvement in Bioventus' financial position. The company secured better terms that will directly boost cash flow through interest savings while simultaneously providing greater financial flexibility. The 150% increase in revolving credit capacity particularly stands out, giving management substantially more room to maneuver for operational needs or strategic opportunities.

The reduced annual amortization schedule is equally important - cutting principal repayment requirements in half from 10% to 5% will preserve an additional $15 million in cash annually based on the $300 million term loan. Combined with the interest savings, this refinancing frees up approximately $17 million in annual cash flow that can be redirected to growth initiatives or further debt reduction.

The five-year maturity extends the company's debt horizon to 2030, eliminating near-term refinancing risk and providing stability to their capital structure. The improved terms reflect creditors' increased confidence in Bioventus' financial health following what management describes as "significant progress over the past two years to increase profitability, reduce debt, and enhance cash flow."

DURHAM, N.C., Aug. 04, 2025 (GLOBE NEWSWIRE) -- Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or the “Company”), a global leader in innovations for active healing, today announced that it has entered into a $400 million Senior Secured Credit Agreement (the “Credit Agreement”) consisting of a $300 million term loan facility and a $100 million revolving credit facility on July 31, 2025. The new Credit Agreement will mature on July 31, 2030.

Among the many enhancements, the new Credit Agreement provides for additional liquidity through an increase in the revolving credit facility from $40 million under the Company’s previous credit facilities under the Credit and Guaranty Agreement, dated December 6, 2019, as amended (the “2019 Credit Agreement”) to $100 million. The current applicable interest margin was reduced 75 basis points compared to the 2019 Credit Agreement generating more than $2 million of annual interest expense savings. Finally, the annual amortization on the term loan was lowered from 10 percent to 5 percent per year for the term of the loan.

“The new Credit Agreement lowers the interest rate on our debt and increases our liquidity, reflecting the significant progress over the past two years to increase our profitability, reduce debt, and enhance cash flow,” said Rob Claypoole, Bioventus President and Chief Executive Officer. “This is expected to further increase our financial flexibility and enable greater optionality for capital deployment moving forward.”

The proceeds resulting from the Credit Agreement were used to repay the outstanding loan balance of $333 million under the 2019 Credit Agreement. The Company repaid its obligations under the 2019 Credit Agreement using $30 million drawn on the new revolving credit facility along with $3 million of cash on the Company’s balance sheet and the new $300 million term loan.

About Bioventus
Bioventus delivers clinically proven, cost-effective products that help people heal quickly and safely. Its mission is to make a difference by helping patients resume and enjoy active lives. The Innovations for Active Healing from Bioventus include offerings for Pain Treatments, Restorative Therapies and Surgical Solutions. Built on a commitment to high quality standards, evidence-based medicine and strong ethical behavior, Bioventus is a trusted partner for physicians worldwide. For more information, visit www.bioventus.com and follow the Company on LinkedIn and X. Bioventus and the Bioventus logo are registered trademarks of Bioventus LLC.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal security laws. Any statements contained herein that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning future interest payments, increased liquidity and financial flexibility, options for capital deployment and our business strategy. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events, future trends, and future dates, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated herein include, but are not limited to: we may be unable to successfully commercialize newly developed or acquired products or therapies within expected timeframes; the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing certain of our products; demand for our existing portfolio of products and any new products, line extensions or expanded indications depends on the continued and future acceptance of our products by physicians, patients, third-party payers and others in the medical community; market opportunities and our focus on a limited number of products; failure to achieve and maintain adequate levels of coverage and/or reimbursement for our products or future products, the procedures using our products; pricing and other competitive factors; governments outside the United States might not provide coverage or reimbursement of our products; risks related to product liability claims; fluctuations in demand for our products; issues relating to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; we may face issues with respect to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; our reliance on a limited number of third-party manufacturers to manufacture certain of our products; economic, political, regulatory and other risks related to international sales, manufacturing and operations; unstable political or economic conditions; risks related to our debt; legislative or regulatory reforms; and other the other risks identified in our Annual Report on Form 10-K for the year ended December 31, 2024 as such factors may be updated from time to time in Bioventus’ other filings with the SEC which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of Bioventus’ website at https://ir.bioventus.com. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ materially from those set forth in the forward-looking statements.

Investor and Media Inquiries:
Dave Crawford
919-474-6787
Dave.Crawford@bioventus.com  

FAQ

What are the key terms of Bioventus's (BVS) new credit agreement in 2025?

The new agreement includes a $300M term loan and $100M revolving credit facility, with a 75 basis point reduction in interest margin and 5% annual amortization, maturing in 2030.

How much will Bioventus (BVS) save annually from the new credit agreement?

Bioventus will save over $2 million annually in interest expense due to the 75 basis point reduction in interest margin.

How did Bioventus (BVS) use the proceeds from the new credit facility?

Bioventus used the proceeds to repay its $333M outstanding loan balance using the new $300M term loan, $30M from the revolving facility, and $3M cash.

What is the maturity date of Bioventus's (BVS) new credit agreement?

The new credit agreement will mature on July 31, 2030.

How much did Bioventus's (BVS) revolving credit facility increase?

The revolving credit facility increased by $60 million, from $40 million to $100 million.