Inogen Inc Debt Disclosure
5. Long-term debt
JP Morgan Chase debt
In November 2014, the Company secured a primary banking relationship that provides access to a $15,000 working capital revolving line of credit, and treasury and cash management services through commercial banking with JP Morgan Chase Bank. This agreement is a three-year working capital revolving line of credit which replaced the previous loan facility the Company maintained with Comerica. The interest rate on outstanding debt balances will be London Interbank Offer Rate (LIBOR) plus 1.25%.
The Company is required to maintain at all times a tangible net worth of $90,000 and EBITDA (i) of $10,000 for any period of four consecutive quarters commencing with the four-quarter test period ended September 30, 2014 through the four-quarter test period ended March 31, 2016 and (ii) of $12,500 for any four-quarter test period commencing with the four-quarter test period ended June 30, 2016 and continuing thereafter. As of December 31, 2016, the Company had $43,583 in EBITDA and was required to have $12,500. In addition, the Company had a tangible net worth of $181,847 and was required to have $90,000. The revolving line of credit also restricts the Company’s ability to pay dividends. The Company may pay dividends, share repurchases or acquisitions in the aggregate not to exceed $1,000 in any fiscal year provided that no event of default has occurred. As of December 31, 2016, the Company had $15,000 in available debt capacity under the revolving facility.
Patent purchase obligation
The contractual obligations schedule below relates to the acquisition of patents which are reflected in intangible assets and were acquired in 2011.
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December 31, |
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(amounts in thousands) |
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2016 |
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2015 |
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Contractual obligation, bearing imputed interest at prime plus two, |
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quarterly payments of $53 beginning May 2011 through October |
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2014 and quarterly payments of $81 beginning January 2015 through |
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October 2016 |
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$ |
— |
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$ |
315 |
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Less: current maturities |
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— |
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(315 |
) |
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Long-term debt, net of current portion |
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$ |
— |
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$ |
— |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2016 | Feb 28, 2017 | Showing above |
| 2015 | Mar 14, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.