Apollo Endosurgery said it secured a $50 million term loan from Athyrium Capital Management it plans to use to refinance its debt.
The maker of bariatric and gastrointestinal surgical products said it plans to use the cash to repay loans used to finance its 2013 acquisition of Allergan‘s obesity-intervention division. The remainder of the new loan will be used for general corporate purposes.
The loan was provided through Athyrium’s Opportunities Fund II.
“Athyrium is excited to partner with Apollo during this transformative time in the company’s life. Apollo’s unique portfolio of minimally invasive products addresses the unmet need for treatments that are both more efficacious and safer in the large, growing global obesity market,” Athyrium partner Richard Pines said in prepared remarks.
Apollo Endosurgery was founded in 2006 by Apollo Group, a collaboration of physicians affiliated with the Mayo Clinic, Johns Hopkins University, Medical University of South Carolina, the University of Texas Medical Branch, and the Chinese University of Hong Kong.