AVITA Medical Secures $60M Senior Secured Credit Facility, Refinances Debt, and Issues Warrants

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This is a critical financing event for AVITA Medical, providing substantial capital relative to its market capitalization. While the $60 million facility offers a crucial runway for operations and growth, it comes with a high interest rate (SOFR + 7.50%) and significant fees, including an exit fee and prepayment premiums. The issuance of warrants, potentially up to 650,000 shares, introduces dilution. The company also terminated its existing credit agreement, streamlining its debt structure. The financing is tied to strict financial covenants, including minimum net revenue targets, which will require the company to achieve specific performance milestones, such as $15.4 million in Q1 2026 revenue. Investors should monitor the company's ability to meet these covenants and manage the high cost of this capital.

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• New Credit Facility Secured

  AVITA Medical entered into a five-year senior secured credit facility of up to $60 million with Perceptive Credit Holdings V, LP. An initial $50 million was funded on January 13, 2026, with an option for an additional $10 million by March 31, 2027, subject to a net revenue requirement. The facility carries an interest rate of SOFR (or 4.00%) plus 7.50%.

• Existing Debt Refinanced

  The company repaid in full and terminated all obligations under its existing credit agreement with OrbiMed Advisors, LLC, effectively refinancing its outstanding debt.

• Warrant Issuance to Lender

  As part of the financing, AVITA Medical agreed to issue warrants to the lender to purchase up to 500,000 shares of common stock initially, with an additional 150,000 shares if the second tranche is drawn. The initial exercise price is $3.4019 per share, and the warrants have a 10-year term, subject to shareholder approval.

• Financial Covenants and Fees

  The credit facility includes financial maintenance tests, requiring the company to maintain a minimum of $5 million in unrestricted cash and specific trailing twelve-month net revenue targets, starting at $68.5 million for the quarter ending March 31, 2026. An exit fee of 5% of the aggregate principal borrowed is payable if shareholder approval for the warrant is not secured by September 30, 2026, and prepayment premiums range from 1% to 10%.

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This is a critical financing event for AVITA Medical, providing substantial capital relative to its market capitalization. While the $60 million facility offers a crucial runway for operations and growth, it comes with a high interest rate (SOFR + 7.50%) and significant fees, including an exit fee and prepayment premiums. The issuance of warrants, potentially up to 650,000 shares, introduces dilution. The company also terminated its existing credit agreement, streamlining its debt structure. The financing is tied to strict financial covenants, including minimum net revenue targets, which will require the company to achieve specific performance milestones, such as $15.4 million in Q1 2026 revenue. Investors should monitor the company's ability to meet these covenants and manage the high cost of this capital.