Accuray Incorporated announced it has closed a new $52 million senior secured revolving loan facility with MidCap Financial Trust. The net proceeds of the facility, in addition to cash on hand were used to retire all debt held by Cerberus Business Finance, LLC.

The new facility bears interest at 90-day LIBOR (subject to a 1.00% floor) plus 450 basis points with a final maturity date of June 2021. This spread is up to 300 basis points lower than the debt being retired and as a result Accuray expects interest costs to be reduced by approximately $2.0 million annually beginning in fiscal 2018. The Company can draw upon a further $33.0 million of additional revolving facility, subject to the terms of the agreement.

"The new agreement lowers our annual interest costs and reduces total debt outstanding by over $10.0 million," said Kevin Waters, Chief Financial Officer. "In regard to our remaining outstanding convertible debt, our objective remains to evaluate all financing sources that would allow us to either refinance our existing convertible debt or provide the cash necessary to settle the debt with cash at maturity and our new loan facility with MidCap Financial Trust gives us the flexibility to achieve that objective."

The Company had $98.4 million of cash, cash equivalents, restricted cash and investments at March 31, 2017.