By Devika Patel
Knoxville, Tenn., April 20 - Cardiovascular Systems, Inc. established a $25 million credit facility with Silicon Valley Bank and will also raise up to $4 million through a convertible debt financing with Partners for Growth, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The Silicon Valley facility consists of a $10 million growth capital term loan and a $15 million line of credit for working capital.
The Partners for Growth convertible debt allows the company to draw up to $4 million in the first year and additional funds over the following four years until maturity on April 14, 2015.
The convertible debt bears interest at a floating rate equal to 275 basis points above Silicon Valley Bank's most recently announced Prime rate.
The company drew $1.5 million of convertible debt at closing on April 15. In addition, Partners for Growth received a warrant for 147,330 shares, which is exercisable at $5.43 for five years.
Proceeds will be used to consolidate existing outstanding debt, provide working capital for growth and for general corporate purposes.
Cardiovascular Systems is a medical device development company located in St. Paul, Minn.
| Issuer: | Cardiovascular Systems, Inc.
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| Issue: | Credit facility, convertible debt
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| Amount: | $29 million
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| Settlement date: | April 15
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| Stock symbol: | Nasdaq: CSII
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| Stock price: | $5.53 at close April 15
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| Market capitalization: | $79.5 million
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|
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| Credit facility
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| Amount: | $25 million
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| Investor: | Silicon Valley Bank
|
|
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| Convertible debt
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| Amount: | $4 million
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| Maturity: | April 14, 2015
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| Coupon: | Prime plus 275 bps
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| Price: | Par
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| Yield: | Prime plus 275 bps
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| Warrants: | For 147,330 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $5.43
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| Investor: | Partners for Growth
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