L.O.T.W. #147 - AVITA Medical Rebuilds Balance Sheet Strength with New Structured Term Loan
$60 million commitment from Perceptive Credit Holdings refinanced existing structured term loan from Orbimed Advisors and realigned revenue covenants to the company's current operating trajectory.
In January 2026, AVITA Medical entered into a new multi-year credit relationship with Perceptive Credit Holdings, transitioning from its prior lender, Orbimed Advisors. Orbimed and AVITA had as recently as September 30, 2025 entered into a Fifth Amendment and Waiver related to principal payments triggered by underperformance to previously established revenue targets. It is highly likely that AVITA was in the market to establish a new relationship to defer forthcoming principal payments and to reset the relationship with a new partner.
👓At a Glance
Origination Date: January 13, 2026
Borrower: AVITA Medical, Inc.
Lender: Perceptive Credit Holdings V, L.P.
Deal Size: $60 million
Structure: Multi-tranche, multi-year interest only period, multi-covenant structured term loan
Rate: Variable, greater of SOFR rate or 4.00%, plus 7.50%
Term: 60 months
Use of Proceeds: Refinance existing lender
Source: Press Release
📷Borrower Snapshot
Sector: Healthcare
Subsector: Biotechnology
Ownership: Public (NASDAQ - RCEL) ~$150 million market cap at time of refinance
Commercial Stage: Revenue generating; LTM EBITDA (-)
Business Overview: AVITA Medical is a commercial-stage regenerative medicine company focused on skin restoration technologies. Its flagship product, the RECELL® System, is an FDA-approved, point-of-care device that enables clinicians to create a spray-on suspension of a patient’s own skin cells for the treatment of acute burns and full-thickness skin defects. The technology reduces the amount of donor skin required and can accelerate healing, positioning the company within specialized burn centers and reconstructive surgery settings. AVITA generates revenue primarily through the sale of single-use procedural kits, with growth driven by expanding clinical adoption, additional indications, and reimbursement coverage.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $60 million
$50 million Tranche A fully funded at close
$10 million Tranche B
Contingent on achieving at least $85 million in LTM revenue
Draw period terminates March 31, 2027
Maturity: January 13, 2031
Collateral: First priority security interest in all assets of borrower and guarantor subsidiaries
Rate: Variable, greater of SOFR rate or 4.00%, plus 7.50%
Fees:
Closing Fee - included in undisclosed Fee Letter
Prepayment Premium - 1% to 10% depending on time of prepayment
Exit Fee - 5% of aggregate principal amount borrowed
Warrants:
500,000 shares at close
150,000 additional shares if Tranche B is funded
Exercise price is lower of 10 - day VWAP prior to close, or 10-day VWAP prior to issuance
Financial Covenants:
Minimum Liquidity - $5 million
Minimum Net Revenue - See Credit Agreement for LTM Revenue Thresholds
Initial threshold - $68.5 million
December 31, 2030 threshold - $140.0 million