NeoGenomics, Inc. (NASDAQ: NEO) announced today that it has closed on a new five year, $150 million senior secured credit facility, which includes a $75 million revolving loan and a $75 million term loan. The new facility replaces the $54.6 million term loan and undrawn $25 million asset-based revolver previously in place.
The Company borrowed $97.9 million at closing, including $75 million of term debt and $22.9 million under the revolver. The proceeds of this facility combined with approximately $16 million of cash were used to retire the existing $54.6 million term loan, redeem 8,066,667 shares of Series A Redeemable Preferred Stock held by an affiliate of General Electric Company for $55 million, and to pay certain fees and expenses. Amounts drawn under this new facility bear interest according to a pricing grid that is based on the ratio of debt to Adjusted EBITDA (as defined in the credit agreement), and is currently equal to LIBOR + 300 basis points, which compares with LIBOR + 700 basis points under the previous term loan.
About NeoGenomics, Inc.
NeoGenomics, Inc. specializes in cancer genetics testing and information services. The Company provides one of the most comprehensive oncology-focused testing menus in the world for Physicians to help them diagnose and treat cancer. The Company's Pharma Services division serves pharmaceutical clients in clinical trials and drug development.
Headquartered in Fort Myers, FL, NeoGenomics operates CLIA certified laboratories in Aliso Viejo, Fresno, Irvine, and West Sacramento, California; Tampa and Fort Myers, Florida; Houston, Texas and Nashville, Tennessee. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, integrated service delivery networks, and managed care organizations throughout the United States. For additional information about NeoGenomics, visit www.neogenomics.com.