aibioShoulder Innovations takes $15.0 million Stifel term loan, repays Trinity
Tickers SI
Shoulder Innovations signed a $15.0 million senior secured term loan with Stifel Bank on June 26, 2026, and used it to repay Trinity Capital. The $30.0 million asset-based revolver was undrawn at closing.
Key facts
- Company
- SHOULDER INNOVATIONS, INC. (NYSE: SI)
- News type
- Debt Financing
- Primary source
- SEC filing (Form 8-K)
Shoulder Innovations, Inc. entered into a Loan and Security Agreement on June 26, 2026 with Stifel Bank, as lender. The company's Form 8-K, dated June 26, 2026 and signed June 29, 2026 by Chief Financial Officer Jeffrey Points, says the agreement provides two facilities. The first is a senior secured term loan of $15.0 million, fully funded at closing. The second is a senior secured asset-based revolving line of credit of $30.0 million, which the company can increase by $5.0 million at its request, subject to conditions. The filing names no placement agent, underwriter or financial advisor for the loan.
Repaying Trinity Capital
The proceeds of the term loan repaid the company's obligations to Trinity Capital Inc. under a loan and security agreement dated August 7, 2023 and amended on June 21, 2025. On June 26, 2026 the company voluntarily prepaid the principal, interest and premiums due to Trinity, which the 8-K puts at $15.7 million, and terminated that agreement the same day. Trinity's security interest in the company's assets was released.
The payoff was larger than the term loan. The $15.7 million figure exceeds the $15.0 million term loan, and the 8-K does not say how the difference was paid.
Terms of the term loan
The term loan matures on June 1, 2031. It bears interest at the greater of 0.75% below the prime rate or 5.00%. The company may prepay it at any time without penalty, except that a prepayment made within one year of the closing date carries a premium of 1.00% of the principal outstanding.
The loan is secured by substantially all of the company's assets. The 8-K excludes copyrights, patents, trademarks, service marks and related infringement claims, so those assets are not part of the collateral. The agreement limits the company's ability to incur debt, grant liens, pay dividends and distributions on capital stock, and make investments and acquisitions, with exceptions customary for secured financings.
The agreement also contains a springing minimum revenue covenant. The 8-K says that covenant applies only under conditions tied to total debt outstanding and liquidity. The filing does not give the revenue level it requires.
Terms of the revolver
The revolving facility matures on June 26, 2029. It was undrawn at closing and may be used for working capital and general corporate purposes. Borrowing depends on a base made up of specified percentages of eligible accounts receivable, which the lender may adjust. Up to $15.0 million of the revolver is available without that formula, but only if the company meets certain liquidity requirements. Revolver borrowings bear interest at the greater of the prime rate or 5.00%.
The company's financials
The company's 10-K, filed March 10, 2026, reports revenue of $47.3 million for 2025, up from $31.6 million for 2024. Research and development expense was $7.7 million in 2025 and $4.5 million in 2024. The net loss was $40.4 million for 2025, against $15.6 million for 2024. Cash used in operations was $28.6 million in 2025, up from $14.1 million in 2024.
Revenue rose, but the net loss and cash used in operations also grew. At the end of 2024 the company held $6.1 million in cash and cash equivalents and $8.9 million in short-term investments. The 8-K gives no cash balance, so the term loan cannot be set against cash on hand.
What the filing leaves open
The 8-K gives a summary only. It says the full Loan Agreement will be filed as an exhibit to the company's Form 10-Q for the three and six months ending June 30, 2026, so the revenue level in the springing covenant and the liquidity tests are not yet public.