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Avalign Technologies Working With Advisors to Restructure Private Debt
Avalign Technologies, a medical device manufacturer, is working with advisors to restructure its private debt, according to sources.
The maker of orthopedic implants and instruments is advised by Piper Sandler as investment bank and Wilkie Farr and Kirkland & Ellis as counsel, the sources said.
The Linden Capital Partners-backed company has roughly $400 million of private debt, owned by Ares Management and Crescent Capital. As of December 2024, Ares owned a $38.9 million term loan at 11.76% interest and a $1.6 million revolving credit facility at 10.85%. Both facilities will mature in 2028. Avalign amended its agreement with Ares to PIK up to 30% of interest payments, allowing the company to reinvest in R&D and manufacturing enhancements.
Linden Capital Partners acquired Avalign from Arlington Capital Partners in 2018 for an undisclosed amount. KeyBanc Capital Markets and ING Capital served as joint lead arrangers on the first lien credit facilities, and Crescent Mezzanine Partners and Northwestern Mutual led and provided financing for the second lien credit facilities in connection with the transaction.
Harvest Partners SCF, the noncontrol private equity strategy fund of Harvest Partners, said in January 2019 that it invested in Avalign. Proceeds from HP SCF’s investment were used to support the acquisition of Avalign by Linden.
Medical technology manufacturers have struggled with higher labor and input costs, the sources said. Orthopedic contract manufacturing organizations such as Avalign can also be affected by destocking, which reduces orders.
Avalign Technologies, Linden Partners, Piper Sandler, Wilkie Farr and Kirkland & Ellis did not respond to requests for comment.
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