AVITA Medical, Inc. 8-K

What Happened

• AVITA Medical, Inc. (RCEL) announced on January 13, 2026 that it entered into a five-year senior secured Credit Agreement and Security Agreement with Perceptive Credit Holdings V, LP. The facility totals up to $60 million, with $50 million funded at closing and an additional $10 million available at the company’s option (subject to a net revenue test and notice by March 31, 2027).
• Simultaneously, AVITA repaid and terminated its prior credit agreement with an OrbiMed affiliate. The new facility is guaranteed by Avita Medical Americas, LLC and secured by substantially all assets of the borrower and guarantor.
• The company also issued a press release on January 13, 2026 updating its expected fourth-quarter and full‑year 2025 revenue and providing 2026 revenue guidance (press release attached as Exhibit 99.1 to the 8‑K).

Key Details

• Facility size and funding: $60M total; $50M initial funded on closing (Jan 13, 2026); $10M additional commitment available through 3/31/2027 if revenue test is met.
• Pricing and fees: interest = (greater of SOFR or 4.00%) plus a 7.50% margin; default interest adds 4.00% to the rate. Prepayment premium of 1%–10% and other lender fees apply. An exit fee equal to 5% of principal applies if shareholder approval for an attached warrant is not obtained by 9/30/2026.
• Covenants & liquidity: customary covenants limiting liens, additional debt, dispositions and dividends; a trailing‑12‑month minimum net revenue maintenance test; and a requirement to maintain at least $5 million of unrestricted cash.
• Warrant: the lender will receive a warrant to purchase originally up to 500,000 shares (plus 150,000 additional shares if the $10M additional commitment is drawn). Exercise price is the lower of two 10‑day VWAP measures; 10‑year term. Warrant issuance is subject to shareholder approval under ASX rules and resale registration obligations by AVITA.

Why It Matters

• The new secured facility provides immediate liquidity ($50M funded) and optional additional capital ($10M) that can support operations and growth through 2026, while replacing the prior OrbiMed facility. The financing is dilutive only if the warrant is exercised, but it includes significant interest costs and fees that will affect cash interest expense.
• Covenants such as the net revenue test and $5M minimum unrestricted cash requirement create performance and liquidity benchmarks the company must meet; failure to obtain shareholder approval for the warrant by contract deadlines can trigger fees and ultimately default. The press release update on Q4/2025 and 2026 revenue guidance is material for assessing near‑term performance, though the 8‑K references the guidance without detailed figures in the filing.