ATLANTA, Oct. 31, 2011 /PRNewswire/ -- CryoLife, Inc.
(NYSE: CRY), a leading tissue processing and medical device Company
focused on cardiac and vascular surgery, announced it has entered
into a credit facility with GE Capital, Healthcare Financial
Services for up to $20 million in
revolving credit for working capital, acquisitions and other
corporate purposes. The credit agreement expands upon the
Company's borrowing capacity from its previous facility of
$15 million and expires in
October 2014, at which time the
outstanding principal balance will be due.
We are pleased to continue our relationship with one of the
leading global healthcare finance organizations. Their
in-depth knowledge of the healthcare space positions them as the
ideal partner as we continue to evaluate strategic business
development opportunities to accelerate our growth and create value
for our shareholders," stated Steven G.
Anderson, Chairman, President and Chief Executive Officer of
CryoLife, Inc.
"We are extremely pleased to maintain our strong relationship
with CryoLife," said Robert
McCarrick, Senior Managing Director of Corporate Finance for
GE Capital, Healthcare Financial Services. "Our financing
expertise and strong balance sheet enabled us to underwrite this
transaction in a tough market and will help CryoLife achieve its
short- and long-term financing needs."
Terms of the credit facility include an interest rate at LIBOR
or the lender's base rate, as defined, plus an applicable margin.
The credit facility is secured by substantially all of the
assets of the Company and its subsidiaries. The credit
agreement includes various covenants such as minimum EBITDA,
customary conditions on incurring new indebtedness and limitations
on cash dividends. For a discussion of the material terms of
the credit agreement see CryoLife's Form 8-K filed with the
Securities and Exchange Commission on October 31, 2011.
About CryoLife
Founded in 1984, CryoLife, Inc. is a leader in the processing
and distribution of implantable living human tissues for use in
cardiac and vascular surgeries throughout the U.S.
and Canada. CryoLife's CryoValve® SG
pulmonary heart valve, processed using CryoLife's proprietary
SynerGraft® technology, has FDA 510(k) clearance for the
replacement of diseased, damaged, malformed, or malfunctioning
native or prosthetic pulmonary valves. CryoLife's
CryoPatch® SG pulmonary cardiac patch has FDA 510(k)
clearance for the repair or reconstruction of the right ventricular
outflow tract (RVOT), which is a surgery commonly performed in
children with congenital heart defects, such as Tetralogy of
Fallot, Truncus Arteriosus, and Pulmonary Atresia. CryoPatch
SG is distributed in three anatomic configurations: pulmonary
hemi-artery, pulmonary trunk, and pulmonary branch.
CryoLife's BioGlue® Surgical Adhesive is FDA approved as
an adjunct to sutures and staples for use in adult patients in open
surgical repair of large vessels. BioGlue is also CE marked
in the European Community and approved in Canada and Australia for use in soft tissue repair and
was recently approved in Japan for use in the repair of
aortic dissections. CryoLife's BioFoam™ Surgical Matrix is CE
marked in the European Community for use as an adjunct in the
sealing of abdominal parenchymal tissues (liver and spleen) when
cessation of bleeding by ligature or other conventional methods is
ineffective or impractical. CryoLife distributes
PerClot®, an absorbable powder hemostat, in the European
Community. CryoLife, through its subsidiary Cardiogenesis
Corporation, specializes in the treatment of cardiovascular disease
and the sale of devices that treat severe angina. Its market
leading FDA-approved Holmium: YAG laser system and single use
fiber-optic delivery systems are used to perform a surgical
procedure known as Transmyocardial Revascularization (TMR).
For additional information about CryoLife, visit CryoLife's
website, http://www.cryolife.com/.
About GE Capital, Healthcare Financial Services
With over $17 billion invested, GE
Capital, Healthcare Financial Services is a premier provider of
capital and services to the healthcare industry, with investments
in more than 40 sub-sectors including senior housing, hospitals,
pharmaceuticals, and medical devices. GE Capital, Healthcare
Services' team of professionals provides deep industry expertise to
create business and financial solutions tailored to meet the
individual needs of its customers. For more information,
visit gecapital.com/healthcare
Statements made in this press release that look forward in
time or that express the beliefs, expectations or hopes of
CryoLife's management or GE Capital, Healthcare Financial Services
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements
include those regarding our continuing evaluation of strategic
business opportunities to accelerate our growth and create value
for our shareholders, and the belief of GE Capital, Healthcare
Financial Services that this transaction will help CryoLife achieve
its short- and long-term financing needs. These future events
may not occur as and when expected, if at all, and, together with
the Company's business, are subject to various risks and
uncertainties. These risks and uncertainties include that
CryoLife's continuing evaluation of strategic business
opportunities is subject to change based on the changing dynamics
of our Company and the economy in general. Any business
development efforts may not ultimately lead to accelerated growth
or value creation for our shareholders, as any business development
efforts are subject to delays, cost overages and regulatory
difficulties, and efforts to fully integrate future acquisitions
and new product offerings into our business may not be successful
and can potentially disrupt our normal business activities.
Also, this transaction with GE Capital, Healthcare Financial
Services may not help CryoLife achieve all of its short- and
long-term financing needs and, depending on the changing needs of
the Company, CryoLife may need to secure further financing in the
future, possibly at terms that are less favorable than those
contained in the agreement with GE Capital, Healthcare Financial
Services. Further, the credit agreement is subject to various
covenants that CryoLife may be unable to maintain, such as the
required EBITDA levels, and CryoLife may be unable to meet other
borrowing conditions. For a discussion of additional risks
impacting CryoLife's business, see the Company's Form 10-K for the
year ended December 31, 2010, and its
Form 10-Q filing for the quarters ended March 31, 2011, June 30,
2011, and September 30, 2011,
and CryoLife's other SEC filings. The Company does not
undertake to update its forward-looking statements.
Contacts:
CryoLife
D. Ashley Lee
Executive Vice President, Chief Financial Officer
and Chief Operating Officer
Phone: 770-419-3355
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The Ruth Group
Nick Laudico / Zack Kubow
646-536-7030 / 7020
nlaudico@theruthgroup.com
zkubow@theruthgroup.com
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SOURCE CryoLife, Inc.