aibioKestra Medical draws $75.0 million from up to $200.0 million term loan
Tickers KMTS
Kestra Medical drew $75.0 million from a facility of up to $200.0 million. The Tranche A loan funded on July 10, 2026, and repaid a prior loan from Perceptive Credit Holdings IV, LP.
Key facts
- Company
- KESTRA MEDICAL TECHNOLOGIES, LTD. (NASDAQ: KMTS)
- News type
- Debt Financing
- Primary source
- SEC filing (Form 8-K)
Kestra Medical Technologies, Ltd. and its subsidiary, Kestra Medical Technologies, Inc., signed a loan agreement on July 10, 2026, with BPCR Limited Partnership and BioPharma Credit Investments V (Master) LP as lenders. The company's Form 8-K says both lenders are investment funds managed by Pharmakon Advisors, LP. BioPharma Credit PLC is the collateral agent. The 8-K, dated July 10 and signed by President and Chief Executive Officer Brian Webster on July 14, 2026, describes a five-year senior secured term loan facility of up to $200.0 million in four tranches. The filing names no placement agent or financial advisor.
The four tranches
The $75.0 million Tranche A Loan funded on July 10, 2026. The Tranche B Loan, for $25.0 million, can be requested at the borrower's option through July 31, 2027, subject to limited conditions. The Tranche C Loan, for $50.0 million, is available once trailing twelve-month revenue reaches $150.0 million, and can be requested through June 30, 2028. The Tranche D Loan is an uncommitted $50.0 million facility for acquisitions, which requires lender approval on a date the parties agree.
The company's net proceeds from Tranche A were approximately $20.0 million, after debt issuance costs, fees and expenses, and after repaying the prior loan in full. The prior loan was under a loan agreement dated September 29, 2023 with Perceptive Credit Holdings IV, LP. The 8-K says Perceptive's security interests were released. The remaining proceeds will fund general corporate and working capital needs.
Pricing, fees and repayment
The term loans bear interest at a variable rate of 5.50% plus three-month Secured Overnight Financing Rate, with a SOFR floor of 3.25%. Interest is payable quarterly, starting in the quarter after the Tranche A closing. The borrower must pay 1.75% of the lenders' total committed amount on each funding date, for each term loan. The loans mature on July 10, 2031. They are interest-only for 48 months, and then amortize in four equal quarterly installments, beginning in the second fiscal quarter of 2030.
The term loans may be prepaid only in whole, and are subject to make-whole, prepayment premium and exit fees. They must be prepaid on a change in control.
Security and covenants
The credit parties granted the collateral agent a security interest in substantially all assets of the company and its subsidiaries, including intellectual property. The security package includes a Guaranty and Security Agreement, an Irish Debenture and an Irish Share Charge. The borrower must keep at least $20.0 million of cash and cash equivalents at all times.
The agreement limits additional debt, liens, dividends and other restricted payments, and mergers. The 8-K describes these covenants as customary.
Losses and cash use
The company's fiscal year ended April 30, 2026. Its 10-K, filed July 14, 2026, shows revenue of $95.1 million, up from $59.8 million the year before. Research and development expense was $19.5 million, against $15.7 million. The net loss was $131.6 million, against $113.8 million, and cash used in operations was $81.7 million, against $77.6 million. Cash and cash equivalents were $237.6 million at April 30, 2025.
Set against those figures, net proceeds of about $20.0 million from the $75.0 million Tranche A are small. Tranche C requires trailing twelve-month revenue of $150.0 million, a level above the $95.1 million the company reported for the fiscal year.
The 8-K says the full loan agreement will be filed with the annual report on Form 10-K for the period ending April 30, 2026.
What comes next
Tranche B availability runs to July 31, 2027, and Tranche C to June 30, 2028, if the revenue condition is met. The $150.0 million revenue test and the $20.0 million cash floor limit how the company can use the facility. The Tranche D acquisition loan requires lender approval, and the 8-K does not say whether the company plans to request it.