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Note 11 - Long-term Debt

9 Months Ended

Sep. 30, 2022

11. Long-term debt

2022 term loan 3

On September 20, 2022, the Company, and certain of its subsidiaries, entered into a term loan agreement, which provided for up to $50 million in aggregate principal to be drawn. The term loan matures on June 1, 2026. The agreement provides for borrowings of up to $30 million upon closing and options to borrow up to $10 million between closing and June 30, 2023, up to $10 million upon the achievement of certain revenue milestones, and an additional $10 million at the discretion of the lender. The Company borrowed $20 million upon closing. Payments on the borrowing are interest-only through June 2024, with additional criteria allowing for interest-only payments to continue through June 2025. Tranches borrowed under the term loan agreement bear interest at the Wall Street Journal prime rate plus 0.5%. The interest rate is subject to a ceiling that restricts the interest rate for each tranche from exceeding 1.0% above the overall rate applicable to each tranche at their respective funding dates. The term loan agreement contains customary representations and warranties as well as customary affirmative and negative covenants. As of the date of this filing, the Company is in compliance with the covenants set forth in the 2022 term loan 3 agreement. In the event that borrowings under 2022 term loan 3 exceed $20 million, the Company will become subject to financial covenants.

Long-term debt consisted of the following as of September 30, 2022 and December 31, 2021:

					September 30,			December 31,
(In thousands)	Maturity Date	Interest Rate			2022			2021
2022 term loan 1	(1)		4.0	%	$	-		$	1,750
2022 term loan 2	Various		4.0	%		2,896			2,813
2022 term loan 3	Jun-26		6.8	%		20,000			-
Insurance premium financing	Apr-23		5.0	%		1,635			373
Freezer equipment loan	Dec-25		5.7	%		502			612
Manufacturing equipment loans	Oct-25		5.7	%		288			355
Freezer installation loan	Various		6.3	%		1,143			1,334
Other loans	Various	Various				8			9
Total debt, excluding unamortized debt issuance costs						26,472			7,246
Less: unamortized debt issuance costs						(198	)		(31	)
Total debt						26,274			7,215
Less: current portion						(2,067	)		(862	)
Total long-term debt					$	24,207		$	6,353

(1) 2022 term loan 1 carried a maturity date of September 2024 as of the year ended December 31, 2021. As of September 30, 2022, the entirety of the outstanding principal and accrued interest was repaid.

2022 term loan 3 is secured by substantially all assets of BioLife, SAVSU, CBS, SciSafe, Global Cooling and Sexton, other than intellectual property. 2022 term loan 2 is secured by substantially all assets of Global Cooling and is effectively subordinated to the security interest established by the lenders of 2022 term loan 3. Equipment loans are secured by the financed equipment.

As of September 30, 2022, the scheduled maturities of loans payable for each of the next five years and thereafter were as follows:

(In thousands)	Amount
2022 (3 months remaining)	$	679
2023		1,888
2024		5,544
2025		10,543
2026		5,222
Thereafter		2,596
Total debt, excluding unamortized debt issuance costs		26,472
Less: unamortized debt issuance costs		(198	)
Total debt	$	26,274