Key Highlights

● TELA Bio's lenders agreed not to test the minimum Revenue covenant for the next two quarterly measurement dates.

● The Limited Consent was signed September 28, 2026 with Perceptive Credit Holdings V, LP, the administrative agent, and required lenders.

● The covenant will not be tested for the quarters ending on or about September 30, 2026 and December 31, 2026.

● The full Limited Consent will be filed with TELA Bio's Form 10-Q for the third quarter of 2026.

TELA Bio, Inc. (NASDAQ:TELA) disclosed in a Form 8-K filed September 29, 2026 that its lenders have agreed not to test a minimum revenue covenant for the next two quarterly measurement dates. The company said it signed a Limited Consent on September 28, 2026 with Perceptive Credit Holdings V, LP, the administrative agent, and the required lenders under its credit agreement. The consent means the minimum revenue requirement will not be tested for the fiscal quarters ending on or about September 30, 2026 and December 31, 2026.

What the Filing Says

The report is filed under Item 1.01, Entry into a Material Definitive Agreement, which companies use when they sign a contract outside the ordinary course of Business that is material to them. TELA Bio says it is party to a Credit Agreement and Guaranty dated as of November 13, 2025, with Perceptive Credit Holdings V, LP as Administrative Agent and several lenders. The filing quotes the operative language: "the minimum Revenue (as defined in the Credit Agreement) covenant set forth in Section 10.02 of the Credit Agreement shall not be tested with respect to the fiscal quarters ending on or about September 30, 2026 and December 31, 2026."

The consent is described as covering testing of that single covenant for those two quarters. The filing does not describe any other change to the credit agreement.

What a Minimum Revenue Covenant Is

Lenders often include financial covenants in Loan agreements, requiring a borrower to meet certain measures, such as a minimum level of revenue over a trailing period, so that the lender can monitor the borrower's performance. If a borrower falls short of a covenant, the agreement typically allows the lender to take actions such as charging additional interest, requiring changes or, in some cases, demanding repayment. A Waiver or consent that says a covenant will not be tested for a period removes that particular test for the stated quarters.

What the Filing Does Not Disclose

The filing does not give the size of the credit facility, its maturity, its interest rate, the level at which the minimum revenue covenant is set, or how much has been borrowed. It also does not say whether the lenders charged a fee or attached conditions to the consent, whether any other covenants apply after the two quarters, or how the covenant will be handled after December 31, 2026. It does not include TELA Bio's revenue figures for the current quarter.

The report states that the full Limited Consent will be filed with the company's Form 10-Q for the third quarter of 2026. That filing is expected to provide the complete text, including any terms that the 8-K summary does not repeat.

TELA Bio is a Delaware corporation headquartered at 1 Great Valley Parkway in Malvern, Pennsylvania, and its common stock trades on the Nasdaq Global Market under the symbol TELA. It operates in the surgical and medical instruments industry.

TELA Bio Covenant Relief Through December 2026

The most concrete next step in the filing is the Form 10-Q for the third quarter of 2026, which will include the Limited Consent as an exhibit and should carry the company's discussion of its debt, Liquidity and covenant compliance. The filing addresses only the two quarters named, so the covenant's treatment after the quarter ending on or about December 31, 2026 is not stated in it.