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What are the details?
The Spectranetics Corporation (NASDAQ:SPNC) announced today that it has completed the refinancing of its outstanding debt and closed on a new $110 million senior secured credit facility led by Midcap Financial and Silicon Valley Bank. The new facility consists of a $60 million term loan and a $50 million revolving line of credit. In addition to increasing the overall size of Spectranetics’ borrowing availability, the new facility is structured to provide ample liquidity through the U.S. launch of its Stellarex drug-coated balloon and beyond. The facility replaces the Company’s previous credit facility with Wells Fargo Bank.
“This financing strengthens our cash position and secures the availability of capital resources through the U.S. Stellarex launch and beyond and allows us to make the necessary investments to capitalize on our attractive pipeline,” said Stacy McMahan, Chief Financial Officer of Spectranetics. “We are pleased to partner with MidCap Financial and Silicon Valley Bank and thank them for their confidence in our business.”
The term loan has a term of 60 months with interest-only payments during the first 24 months, with an option to extend an additional 12 months upon achievement of certain targets. The interest rate on the term loan is based on Libor plus 7.5%. Borrowings under the revolving line of credit bear interest at Libor plus 4.45%. The facility requires the Company to maintain cash or cash equivalents of at least $10 million and achieve certain minimum net revenue thresholds.
Additional details regarding this financing are available in the Company’s Current Report on Form 8-K filed today with the Securities and Exchange Commission.
Spectranetics develops, manufactures, markets and distributes medical devices used in minimally invasive procedures within the cardiovascular system. The Company’s products are sold in over 65 countries and are used to treat arterial blockages in the heart and legs and in the removal of pacemaker and defibrillator leads.
The Company’s Vascular Intervention (VI) products include a range of laser catheters for ablation of blockages in arteries above and below the knee, the AngioSculptscoring balloon used in both peripheral and coronary procedures and Stellarex™ drug-coated balloon peripheral angioplasty platform, which received European CE mark approval in December 2014. The Company also markets support catheters to facilitate crossing of peripheral and coronary arterial blockages, and retrograde access and guidewire retrieval devices used in the treatment of peripheral arterial blockages, including chronic total occlusions. The Company markets aspiration and cardiac laser catheters to treat blockages in the heart.
