HAYWARD, Calif., Nov. 18, 2013 /PRNewswire/ -- Solta Medical,
Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics
market, today announced that it has closed a structured debt
financing with Capital Royalty Partners L.P. The transaction
provides Solta with $40 million for
working capital.
"With the completion of this secured debt agreement, we have the
necessary working capital to aggressively pursue our plans for 2014
to regain momentum and revenue growth," said Mark Sieczkarek, Interim CEO of Solta Medical.
"New sales leadership in North
America and Europe,
combined with significant changes in our sales and marketing
approach, are already generating positive results. With the
additional support of this financing, we are now in a stronger
position to pursue and execute on our growth plan."
Under the terms of the agreement, Capital Royalty will provide
$40 million, $27 million of which will be used immediately to
retire the existing loan with Silicon Valley Bank. The term debt
has interest only payments for the first four years and covenants
which are more tailored to the company's growth plans as compared
to more traditional bank debt.
"Our investment in Solta Medical is consistent with our focus on
providing financing options for growing companies with commercial
technologies," said Luke Duster of
Capital Royalty L.P. "We are confident in the future opportunity
for Solta's aesthetic energy devices in today's
marketplace."
About Solta Medical, Inc.
Solta Medical, Inc. is a global leader in the medical aesthetics
market providing innovative solutions with proven efficacy and
safety backed by over 10 years of clinical study and research. The
company offers aesthetic energy devices for skin resurfacing and
rejuvenation, acne reduction, body contouring and skin tightening,
as well as tools and accessories to optimize the latest liposuction
techniques. The Solta Medical portfolio includes the well-known
brands Thermage®, Fraxel®,
Clear + Brilliant®, Liposonix®,
Isolaz®, CLARO®,
VASERlipo™, VASERshape™,
VASERsmooth™, VentX®,
PowerX®, TouchView®, and
Origins™, which collectively make up a
comprehensive platform to address a range of aesthetic skin and
body issues. More than two and a half million procedures have been
performed with Solta Medical's products around the world. Solta
Medical is headquartered in Hayward,
CA with field teams and regional offices worldwide.
About Capital Royalty L.P.
Capital Royalty L.P. is a market pioneer and innovator in
healthcare investing focused on intellectual property investments
in approved products through structures including royalty bonds,
secured debt, revenue interests and traditional royalty
monetizations. Capital Royalty works directly with leading
healthcare companies, research institutions and inventors to
provide customized solutions to meet their unique financing needs.
The value of each investment is based on the future revenue of
commercialized biopharmaceutical products and medical technologies.
Capital Royalty is actively making investments through Capital
Royalty Fund II, which has $805
million of committed capital.
The firm is headquartered in Houston,
Texas with offices in Boulder,
Colorado and New York City.
For additional information, please visit
www.capitalroyalty.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding the sufficiency of
the Company's working capital and its plans to pursue its growth
plans. Forward-looking statements are based on management's
current, preliminary expectations and are subject to risks and
uncertainties, which may cause Solta Medical's actual results to
differ materially from the statements contained herein. Factors
that might cause such a difference include the risk that physician
adoption of our systems does not grow, the risk that customers do
not continue to purchase treatment tips, the possibility that the
market for the sale of new products does not develop as expected,
and the risks relating to Solta Medical's ability to achieve its
stated financial goals as a result of, among other things, economic
conditions and consumer and physician confidence causing changes in
consumer and physician spending habits that affect demand for our
products and treatments. Further information on potential risk
factors that could affect Solta Medical's business and its
financial results are detailed in its Form 10-K for the year ended
December 31, 2012, and other reports
as filed from time to time with the Securities and Exchange
Commission. Undue reliance should not be placed on forward-looking
statements, especially guidance on future financial performance,
which speaks only as of the date they are made. Solta Medical
undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events or circumstances
after the date they were made, or to reflect the occurrence of
unanticipated events.
SOURCE Solta Medical, Inc.