AirSculpt® Technologies, Inc. Announces Completion of Debt Refinancing

Rhea-AI Summary

AirSculpt Technologies, Inc. (NASDAQ: AIRS) has announced a new credit agreement with lenders, securing $85 million in term loans and a $5 million revolving loan facility. This funding will pay off an existing $83.6 million credit facility due October 28, 2023. The new agreement, maturing on November 7, 2027, is expected to save the company approximately $2 million annually in cash interest, with no prepayment penalties. CFO Dennis Dean expressed satisfaction with the refinancing, noting it provides flexibility to pursue strategic growth plans.

Positive

• Secured $85 million in term loans and a $5 million revolving loan facility.
• Expected cash interest savings of approximately $2 million annually.
• No prepayment penalties under the new credit agreement.

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• None.

MIAMI BEACH, Fla., Nov. 09, 2022 (GLOBE NEWSWIRE) -- AirSculpt® Technologies, Inc., (“AirSculpt” or the “Company”) (NASDAQ: AIRS) an industry leader and provider of premium body contouring procedures, today announced that it has entered into a new credit agreement with several new lenders. The new credit agreement consists of (i) an $85.0 million aggregate principal amount of term loans and (ii) a revolving loan facility in an aggregate principal amount of up to $5.0 million. The proceeds were used to pay off the Company’s existing $83.6 million outstanding principal balance under its existing credit facility coming due on October 28, 2023. The new credit agreement will mature in five years on November 7, 2027. The Company expects cash interest savings of approximately $2 million annually and there are no prepayment penalties under the new agreement.

“I am extremely pleased we were able to execute this refinancing with favorable terms in this challenging economic environment. Our new capital structure gives us plenty of flexibility and positions us well to continue to execute on our strategic growth plans,” said Dennis Dean, Chief Financial Officer.

About AirSculpt®
AirSculpt® Technologies (NASDAQ: AIRS) is an experienced, fast-growing national provider of body contouring procedures delivering a premium consumer experience under its brand, Elite Body Sculpture. At Elite Body Sculpture, we provide custom body contouring using our proprietary AirSculpt® method that removes unwanted fat in a minimally invasive procedure, producing dramatic results. It is our mission to generate the best results for our patients.

Investor Contact:
Dennis Dean
Chief Financial Officer
investors@elitebodysculpture.com

Media Contact:
Stephanie Evans Greene
Chief Marketing Officer
sevansgreene@elitebodysculpture.com

FAQ

What is the significance of AirSculpt's new credit agreement announced on November 9, 2022?

AirSculpt secured $85 million in term loans and $5 million in revolving credit to refinance its existing debt, potentially saving $2 million annually.

When does the new credit agreement for AirSculpt mature?

The new credit agreement matures on November 7, 2027.

How much existing debt is AirSculpt refinancing with the new credit agreement?

AirSculpt is refinancing an existing $83.6 million principal balance.

What are the financial benefits of the new credit agreement for AirSculpt?

The agreement is expected to save AirSculpt approximately $2 million in annual cash interest.

Will there be any penalties for prepaying the new loans for AirSculpt?

No, there are no prepayment penalties under the new credit agreement.