GE Capital’s Healthcare Financial Services business has agented a senior secured credit facility of up to $12.5 million for Cardiva Medical, Inc. The financing is comprised of a $10 million term loan and a $2.5 million asset-based revolving loan.
The funds will provide working capital as the company continues to ramp up the commercialization of its vascular closure product line, which includes Cardiva Catalyst® and VASCADE®. VASCADE was approved by the FDA in 2013, and approved for CE marking in 2012. Catalyst II and Catalyst III were cleared for marketing by the FDA in 2007 and 2009, respectively.
"We realized that we needed a knowledgeable financial partner to fund our day-to-day capital needs for commercializing VASCADE," said Charles Maroney, Cardiva Medical’s CEO. “We were impressed by HFS’ deep knowledge of the healthcare industry and its understanding of the process involved in bringing medical devices to market.”
Based in Sunnyvale, CA, Cardiva Medical develops and commercializes vascular closure technology to help the body heal itself following catheterization procedures. Founded in 2002, it is privately held.
“HFS structured this transaction to provide flexibility that we can draw on as we continue to expand,” said Cardiva Medical’s CFO Mac Farnsworth.
This is the company’s first financing with GE Capital.
“Because of Cardiva’s commercialization ramp-up, it was important to structure the financing relationship to grow along with the company,” said Brett Haring, senior managing director of GE Capital, Healthcare Financial Services’ Life Sciences division.
Cardiva Medical, Inc. is a medical device company that’s focused on developing and commercializing innovative vascular closure technology designed to help the body heal itself following catheterization. The company’s products include VASCADE, a vascular closure system, and Catalyst II and Catalyst III, which are designed to aid manual compression.
GE Capital’s Healthcare Financial Services business is one of the most active capital providers in the U.S. healthcare market, deploying approximately $9 billion in new commitments to customers via 200+ transactions in 2013.