Establishment Labs Holdings Inc. (NASDAQ: ESTA) entered into a $300 million senior secured term loan facility with Oaktree Capital Management, L.P. The loan is structured in two tranches: Tranche E of $265 million will fully refinance the company’s existing debt, while Tranche F of $35 million will provide additional working‑capital flexibility for growth initiatives. The facility has a five‑year maturity that extends to 2031, carries a fixed interest rate, and is secured by a first‑priority lien on the company’s assets. No amortization is required, with principal due at maturity.
The primary purpose of the facility is to refinance existing debt, thereby improving ESTA’s debt profile and potentially lowering its overall cost of capital. By extending the maturity of its debt, the company can preserve liquidity and maintain capital for research and development, market expansion, and future product launches. The additional working‑capital capacity is intended to support ongoing operations and strategic growth initiatives, including continued investment in the Motiva implant platform and the minimally invasive Preservé platform.
"This strengthens our capital structure by extending our maturity and enhancing our financial flexibility. The initial tranche fully refinances our existing debt until 2031 and the additional capacity provides flexibility to support future strategic initiatives. Our business continues to accelerate, and we expect to be positive free cash flow in the second half of this year with substantial growth ahead of us. Oaktree's continued support reflects their long‑standing confidence in our business, and we are very pleased to continue our collaboration with them," said Sandra Harris, Chief Financial Officer of Establishment Labs. "Oaktree is proud to continue its support of Establishment Labs. Over the past four years, we have witnessed the company’s commitment to strong fundamentals and sustainable growth, supported by important innovation in breast aesthetics and reconstruction and the rapid market expansion of Motiva implants in the United States. We look forward to continuing our partnership with Establishment Labs and supporting the management team in its next phase of growth," added Aman Kumar, Co‑Portfolio Manager for Oaktree’s Life Sciences Lending platform.
Prior to this facility, ESTA had a $225 million term loan with Oaktree that was amended in February 2024. The new $300 million facility continues the long‑standing partnership between the company and Oaktree, underscoring the lender’s confidence in ESTA’s business model and growth trajectory.
The refinancing strengthens ESTA’s capital structure by extending debt maturity, reducing refinancing risk, and providing a dedicated source of working capital for R&D and market expansion. The additional $35 million tranche is positioned to fund future product launches and support the company’s ambition to achieve positive free cash flow in the second half of 2026, reinforcing management’s confidence in the company’s growth prospects.
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