AVITA Medical, Inc. (RCEL) closed a five‑year, senior‑secured credit facility with Perceptive Credit Holdings V, LP on January 13 2026, providing up to $60 million in capital. The facility has already delivered $50 million, with an additional $10 million available to draw through the end of the first quarter of 2027.
The new line will replace the company’s prior credit agreement with an affiliate of OrbiMed Advisors and will be used to repay that debt and fund growth initiatives, notably the expansion of its acute wound‑care portfolio. The facility carries trailing‑12‑month revenue covenants of $68.5 million for Q1 2026 and $73 million for the full year, aligning the debt with the company’s projected revenue trajectory of $80 million to $85 million for 2026.
AVITA’s need for the facility is underscored by a recent period of liquidity stress that prompted a going‑concern warning. The company’s current ratio fell to 0.67, and operating and net margins remained negative, despite a robust gross margin of 83.7 %. The financing therefore provides a critical runway while the company works to improve its balance sheet and achieve profitability.
The credit line also supports the commercialization of Cohealyx and PermeaDerm, two new products that complement the RECELL system. Clinical studies for Cohealyx‑I have reached full enrollment, and PermeaDerm‑I has surpassed 75 % enrollment as of December 2025, with data expected in 2026. These milestones, combined with the company’s 2026 revenue guidance, signal a shift from stabilization to execution‑led growth.
Management emphasized the strategic importance of the deal. Interim CEO Cary Vance said the financing “strengthens the foundation of the business – stabilizing revenue, advancing our clinical pipeline, and improving financial flexibility.” CFO David O’Toole added that the facility “provides an important step in strengthening AVITA’s capital structure while preserving shareholder value, including a reset of our revenue covenants to levels we believe are appropriate and manageable.”
The facility includes a SOFR‑based interest rate plus a spread, and AVITA will issue warrants to Perceptive for up to 500,000 shares, potentially rising to 650,000 if the additional $10 million is drawn. The company must meet its revenue covenants to avoid breach, and the warrants represent a potential dilution risk for existing shareholders. Nonetheless, the financing positions AVITA to pursue its growth strategy while addressing its liquidity challenges.
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