Vericel Enters into Expanded $20 Million Credit Facility and Term Loan with Silicon Valley Bank and MidCap Financial Services...
September 12 2016 - 08:00AM
Vericel Corporation (NASDAQ:VCEL), a leading developer of
autologous expanded cellular therapies for the treatment of severe
diseases and conditions, announced today that it entered into an
expanded term loan and revolving line of credit agreement with
Silicon Valley Bank and MidCap Financial Services (MidCap
Financial), providing access to up to $20 million of capital to the
company to be used for general corporate purposes. As of the
quarter ended June 30, 2016, Vericel had an outstanding balance of
$2.4 million under an existing agreement with Silicon Valley Bank
which will be replaced with the expanded facility with Silicon
Valley Bank and MidCap Financial. Additional details
concerning the credit facility and term loan will be contained in
the company’s Current Report on Form 8-K to be filed with the
Securities and Exchange Commission.
"We are pleased to expand our relationship with
Silicon Valley Bank and also to partner with MidCap Financial, and
we appreciate their confidence in our business," said Vericel’s
chief financial officer and vice president of corporate
development, Gerard Michel. "This expanded loan
facility strengthens our balance sheet considerably as we approach
the January 3, 2017 MACI PDUFA goal date.”
Katherine Andersen, managing director of Silicon
Valley Bank, commented, “Vericel is driving important advancements
in cell therapy and it is our pleasure to expand our partnership to
support their continued efforts.”
About Vericel CorporationVericel
develops, manufactures, and markets autologous expanded cell
therapies for the treatment of patients with serious diseases and
conditions. The company markets two cell therapy products in the
United States. Carticel® (autologous cultured chondrocytes)
is an autologous chondrocyte implant for the treatment of cartilage
defects in the knee in patients who have had an inadequate response
to a prior arthroscopic or other surgical repair procedure. Epicel®
(cultured epidermal autografts) is a permanent skin replacement for
the treatment of patients with deep dermal or full thickness burns
greater than or equal to 30% of total body surface area.
Vericel is also developing two additional cell products.
MACI® is a third generation autologous chondrocyte implant intended
to treat cartilage defects in the knee. Ixmyelocel‑T is an
autologous multicellular therapy intended to treat advanced heart
failure due to ischemic dilated cardiomyopathy (DCM). For
more information, please visit the company's website at
www.vcel.com.
Epicel®, Carticel® and MACI® are registered
trademarks of Vericel Corporation. ©2016 Vericel
Corporation. All rights reserved.
About Silicon Valley BankFor 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. With commercial,
international and private banking services, SVB helps address the
unique needs of innovators. Learn more at svb.com.
©2016 SVB Financial Group. All rights reserved.
Silicon Valley Bank is the California bank subsidiary of SVB
Financial Group. Silicon Valley Bank is a member of FDIC and
Federal Reserve System.
About MidCap FinancialMidCap 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’s debt solutions focus in five
areas:
- General and healthcare asset-based working capital loans
collateralized by third-party accounts receivable and other
assets;
- Leveraged loans to companies backed by private equity
sponsors;
- Life sciences loans to VC-backed and public pharmaceutical,
biotech, and medical device companies;
- Real estate loans on all types of commercial properties,
medical office buildings, various types of senior housing and
skilled nursing properties; and
- Lender finance term loans or revolvers provided across the
consumer and commercial finance sectors.
Additional information about MidCap Financial can be found
at www.midcapfinancial.com.
This document contains forward-looking statements, including,
without limitation, statements concerning anticipated profitability
and objectives and expectations regarding our company described
herein, all of which involve certain risks and uncertainties. These
statements are often, but are not always, made through the use of
words or phrases such as "anticipates," "intends," "estimates,"
"plans," "expects," "we believe," "we intend," and similar words or
phrases, or future or conditional verbs such as "will," "would,"
"should," "potential," “can continue,” "could," "may," or similar
expressions. Actual results may differ significantly from the
expectations contained in the forward-looking statements. Among the
factors that may result in differences are the inherent
uncertainties associated with competitive developments, clinical
trial and product development activities, regulatory approval
requirements, the availability and allocation of resources among
different potential uses, estimating the commercial potential of
our products and product candidates and growth in revenues and
improvement in costs, market demand for our products, our ability
to supply or meet customer demand for our products and our ability
to draw down on the SVB MidCap term loan or the full amount of the
SVB MidCap revolving line of credit. These and other
significant factors are discussed in greater detail in Vericel’s
Annual Report on Form 10-K for the year ended December 31, 2015,
filed with the Securities and Exchange Commission ("SEC") on March
14, 2016, Quarterly Reports on Form 10-Q and other filings with the
SEC. These forward-looking statements reflect management's current
views and Vericel does not undertake to update any of these
forward-looking statements to reflect a change in its views or
events or circumstances that occur after the date of this release
except as required by law.
CONTACT:
Chad Rubin
The Trout Group
crubin@troutgroup.com
(646) 378-2947
Or
Lee Stern
The Trout Group
lstern@troutgroup.com
(646) 378-2922
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