Strata Critical Medical, Inc. 8-K

What Happened

• Strata Critical Medical, Inc. (SRTA) filed an 8-K reporting that on January 30, 2026 it and certain subsidiaries entered into a secured Credit Agreement with JPMorgan Chase Bank, N.A. as Administrative Agent. The agreement provides an asset‑based revolving credit facility (ABL Facility) of up to $30.0 million, with an accordion option to increase by up to $20.0 million, and a maturity date of January 30, 2029. The loan is guaranteed by the Company and a subsidiary and is secured by first‑priority liens on substantially all personal property under a Pledge and Security Agreement. The company issued a press release about the transaction on February 5, 2026.

Key Details

• Facility size: $30.0 million revolving ABL, expandable by $20.0 million.
• Maturity: January 30, 2029.
• Pricing & fees: Interest = SOFR‑based + 2.00% margin (options for term or monthly rate); commitment fee 0.25% per annum on unused portion.
• Use of proceeds: Working capital and general corporate purposes; Letters of Credit are permitted (standard fees, expiry before maturity).
• Covenants & tests: Standard affirmative/negative covenants; a springing minimum Fixed Charge Coverage Ratio of 1.05x applies when availability falls below the greater of $5.0M and 20% of commitments.
• Security & remedies: Secured by substantially all personal property under a Pledge and Security Agreement; lenders may terminate commitments, accelerate loans, require cash collateral, and enforce remedies upon default.

Why It Matters

• The new ABL facility provides Strata with additional liquidity to support operations and working capital needs while creating a secured debt obligation that takes priority over many assets.
• Covenants (including the springing coverage ratio) and default remedies could limit flexibility (e.g., on dividends, additional debt, or asset sales) if availability declines or financial tests are not met.
• Investors should view this as a financing move to bolster near‑term liquidity, but be aware of the increased secured leverage and related restrictions described in the filing.