Amendment to Solar Capital Ltd. Loan and Security Agreement

On December 4, 2020, Apollo Endosurgery, Inc. and Solar Capital Ltd. entered into a Seventh Amendment, or the Seventh Amendment, to our loan and security agreement dated March 15, 2019, or the Term Loan Facility. The Seventh Amendment extends the interest only period available under the Term Loan Facility until March 1, 2022 (or September 1, 2022 if certain revenue milestones are achieved), extends the maturity date of the Term Loan Facility to September 1, 2024 (or March 1, 2025 if certain revenue milestones are achieved), and resets mandatory prepayment fees as of the date of the Seventh Amendment. In addition, in connection with the Seventh Amendment, the final fee due at maturity and the additional fee due at the earlier of certain exit events (as described in the Term Loan Facility) or achievement of certain revenue milestones were increased by 2% and 1%, respectively.

A copy of the Seventh Amendment is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein. The foregoing description of the Seventh Amendment is not complete and is qualified in its entirety by reference to the full text of the Seventh Amendment.

Amendment to Securities Purchase Agreement and 6.0% Convertible Debentures

As previously disclosed, on August 12, 2019, we issued $20,000,000 aggregate principal amount of 6.0% Convertible Debentures due 2024, or the Notes, to a Securities Purchase Agreement, or the Purchase Agreement, with certain purchasers named therein, or the Purchasers. As of September 30, 2020, $20,600,000 aggregate principal amount of the Notes were outstanding, including additional principal amounts representing accrued interest under the terms of the Notes.

On December 4, 2020, we entered into an Amendment to the Purchase Agreement and the Notes, or the Notes Amendment, to which the maturity date of $20,445,500 aggregate principal amount of the Notes was extended to August 12, 2026.

A copy of the Notes Amendment is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated by reference herein. The foregoing description of the Notes Amendment is not complete and is qualified in its entirety by reference to the full text of the Amendment.

Item 9.01 Exhibits

(d) Exhibits

Apollo Endosurgery, Inc. Exhibit
EX-10.1 2 solar-apolloendoxseven.htm EX-10.1 DocumentExhibit 10.1Execution VersionSEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT THIS SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”),…
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About Apollo Endosurgery, Inc. (NASDAQ:APEN)

Apollo Endosurgery, Inc., formerly Lpath, Inc., is a medical device company. The Company is focused on less invasive therapies for the treatment of obesity, as well as other gastrointestinal disorders. The Company’s device-based therapies are an alternative to invasive surgical procedures. The Company offers products in over 80 countries. The Company’s products include ORBERA, LAP-BAND and OverStitch. The Company’s product, ORBERA, is a gastric balloon. The ORBERA Intragastric Balloon System is a weight loss aid for adults suffering from obesity. The LAP-BAND System is a minimally invasive procedure that offers weight loss. The LAP-BAND System is indicated for weight reduction for patients with obesity. The OverStitch Endoscopic Suturing System enables advanced endoscopic surgery by allowing physicians to place full-thickness sutures through a flexible endoscope. OverStitch offers solutions for defects in both the upper and lower gastrointestinal tract.