The Spectranetics Corporation (NASDAQ:SPNC) (“the Company”)
announced today that it has amended its existing credit facilities
led by MidCap Financial and Silicon Valley Bank to increase the
total senior secured facility to $140 million. The amended credit
facility consists of a $90 million term loan and a $50 million
revolving line of credit and replaces the previous $60 million term
loan and $50 million line of credit the Company had with the same
financial partners.
"This financing strengthens our balance sheet while providing
favorable terms versus our existing credit facility. We believe
this facility will provide ample liquidity through the US launch of
Stellarex and help us to achieve sustainable, positive cash flows,"
said Stacy McMahan, Chief Financial Officer of the Company. "We are
pleased to continue our relationship with MidCap Financial and
Silicon Valley Bank.”
The maturity of the term loan and revolving credit facilities
was extended from December 2020 to March 2021, and the
interest-only period on the term loan was extended through June
2019. The interest rate on the term loan is initially LIBOR plus
7.15% per annum, an improvement from the prior $60 million term
loan that had an interest rate of LIBOR plus 7.5% per annum.
The 7.15% margin rate will be reduced to 5.95% if the Company
demonstrates at least $12.5 million of trailing six month
EBITDA. Borrowings under the revolving line of credit bear
interest at LIBOR plus 4.45%, the same as the prior revolving
credit agreement.
Additional details regarding this financing are available in the
Company's Current Report on Form 8-K filed today with the
Securities and Exchange Commission.
About Spectranetics
The Spectranetics Corporation develops, manufactures, markets
and distributes medical devices used in minimally invasive
procedures within the cardiovascular system. The Company's products
are available 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.
The Company's Vascular Intervention (VI) products include a
range of laser catheters for ablation of blockages in arteries
above and below the knee, the AngioSculpt scoring balloon used in
both peripheral and coronary procedures, and the Stellarex
drug-coated balloon peripheral angioplasty platform, which received
European CE mark approval in December 2014. The Company also
markets support catheters to facilitate crossing of peripheral and
coronary arterial blockages, and retrograde access and guidewire
retrieval devices used in the treatment of peripheral arterial
blockages, including chronic total occlusions. The Company markets
aspiration and cardiac laser catheters to treat blockages in the
heart.
The Lead Management (LM) product line includes excimer laser
sheaths, dilator sheaths, mechanical sheaths and accessories for
the removal of pacemaker and defibrillator cardiac leads, including
the Bridge™ Occlusion Balloon.
For more information, visit www.spectranetics.com.
About MidCap Financial
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’s debt solutions
focus in five areas: (i) General and Healthcare Asset-Based working
capital loans collateralized by third-party accounts receivable and
other assets, (ii) Leveraged loans to companies backed by private
equity sponsors, (iii) Life Sciences loans to VC-backed and public
pharmaceutical, biotech, and medical device companies, (iv) Real
Estate loans on all types of commercial properties, medical office
buildings, various types of senior housing and skilled nursing
properties, and (v) 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.
About Silicon Valley Bank
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. With
commercial, international and private banking services, SVB helps
address the unique needs of innovators. Learn more
at svb.com.
©2017 SVB Financial Group. All rights reserved. SVB, SVB
FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the
chevron device are trademarks of SVB Financial Group, used under
license. Silicon Valley Bank is a member of the FDIC and the
Federal Reserve System. Silicon Valley Bank is the California bank
subsidiary of SVB Financial Group (Nasdaq:SIVB).
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. You can identify these statements
because they do not relate strictly to historical or current facts.
Such statements may include words such as “anticipate,” “will,”
“estimate,” “expect,” “look forward,” “strive,” “project,”
“intend,” “should,” “plan,” “believe,” “hope,” “see,” “enable,”
“potential,” and other words and terms of similar meaning in
connection with any discussion of, among other things, future
operating or financial performance, strategic initiatives and
business strategies, clinical trials and regulatory approvals,
regulatory or competitive environments, outcome of litigation, our
intellectual property and product development. These
forward-looking statements include, but are not limited to,
statements regarding ample liquidity through the US launch of
Stellarex, achieving sustainable, positive cash flows, our
competitive position, product innovation and development, and
commercialization schedule, expectation of continued growth and the
reasons for that growth, growth rates, strength, integration and
product launches, regulatory approvals, and 2017 outlook and
projected results including projected revenue and expenses, gross
margin, net loss and loss per share. Such statements are based on
current assumptions that involve risks and uncertainties that could
cause actual outcomes and results to differ materially. You are
cautioned not to place undue reliance on these forward-looking
statements and to note they speak only as of the date of this
release. These risks and uncertainties may include financial
results differing from guidance; our need to comply with complex
and evolving laws and regulations; intense and increasing
competition and consolidation in our industry; the impact of rapid
technological change; slower revenue growth and continued losses;
the inaccuracy of our assumptions regarding AngioScore and
Stellarex; market acceptance of our technology and products; our
inability to manage growth; increased pressure on expense levels
resulting from expanded sales, marketing, product development and
clinical activities; uncertain success of our strategic direction;
dependence on new product development and successful
commercialization of new products; loss of key personnel; uncertain
success of or delays in our clinical trials; costs of and adverse
results in any ongoing or future legal proceedings; adverse impact
to our business from healthcare reform and related legislation and
regulations, including changes in reimbursements and the impact of
fraud and abuse and information privacy laws and regulations;
adverse conditions in the general domestic and global economic
markets and volatility and disruption of the credit markets or
other factors that prevent us from obtaining funding; our inability
to protect our intellectual property and intellectual property
claims of third parties; availability of inventory and components
from suppliers, including sole source suppliers; adverse outcome of
FDA inspections, including FDA warning letters and any remediation
efforts; the receipt of FDA clearance and other regulatory
approvals to market new products or applications and the timeliness
of any clearance and approvals; product defects or recalls and
product liability claims; cybersecurity breaches; interruptions of
our manufacturing operations and other events that affect our
ability to manufacture sufficient volumes to fulfill customer
demand; our dependence on third party vendors, suppliers,
consultants and physicians; risks associated with international
operations, including international sales using distributors and
the impact of “Brexit” on our European sales and operations; risks
associated with any future acquisitions; our ability to use net
operating loss carryovers and potential impairment charges; lack of
cash necessary to satisfy our cash obligations under our
outstanding 2.625% Convertible Senior Notes due 2034 and our term
loan and revolving loan facilities; our debt adversely affecting
our financial health and preventing us from fulfilling our debt
service and other obligations; and share price volatility due to
the initiation or cessation of coverage, or changes in ratings, by
securities analysts. For a further list and description of such
risks and uncertainties that could cause our actual results,
performance or achievements to materially differ from any
anticipated results, performance or achievements, please see our
previously filed SEC reports, including those risks set forth in
our 2016 Annual Report on Form 10-K. We disclaim any intention or
obligation to update or revise any financial or other projections
or other forward-looking statements, whether because of new
information, future events or otherwise.
Investor Relations Contacts
Zach Stassen
Investor.relations@spnc.com
(719) 447-2292
Michaella Gallina
Investor.relations@spnc.com
(719) 447-2417
The Spectranetics Corp. (MM) (NASDAQ:SPNC)
Historical Stock Chart
From Mar 2024 to Apr 2024
The Spectranetics Corp. (MM) (NASDAQ:SPNC)
Historical Stock Chart
From Apr 2023 to Apr 2024