The Spectranetics Corporation 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 StellarexTM 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.
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.
MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries. The firm's years of experience, strong balance sheet, and flexibility make it a lender of choice for companies across all stages of growth and complexity. MidCap Financial refers to MidCap FinCo Limited, a private limited company domiciled in Ireland, and its subsidiaries.
For more than 30 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world.