ViewRay entered into a new five-year loan facility agreement with MidCap Financial and Silicon Valley Bank. The Agreement consists of a term loan of up to $100 million and a revolving line of credit of up to $25 million.
"We are pleased with the expansion of our partnership with Silicon Valley Bank and for MidCap's desire to participate in providing ViewRay with important non-dilutive capital to fuel our growth," said Zach Stassen, Chief Financial Officer of ViewRay. "This capital comes at an important time, where we are preparing for meaningful growth in the coming years."
Key elements of the term loan under the Agreement are as follows:
- The term loan commitment is up to $100 million, $25 million of which the Company may elect to access upon achieving a gross margin target for the 2023 fiscal year.
- At close, the Company drew $75 million, $60 million of which will be used to retire its existing debt with Silicon Valley Bank.
- The annual interest rate is equal to the WSJ Prime rate plus 3.5% with a floor of 9.25%.
- The maturity date is five years, with three years of interest only payments. The Company holds the option to extend the interest only period for one additional year.
Key elements of the revolving line of credit under the Agreement are as follows:
- The revolving line of credit provides up to $25 million, comprised of an initial $15 million commitment, with the option to increase the line by an additional $10 million, subject to lender approval and borrowing base availability.
- At close, the Company drew $5 million to enhance its working capital in anticipation of accelerating growth.
- The annual interest rate is equal to WSJ Prime rate plus 0.5% with a floor of 6.25%.