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ev3 establishes $37.5 million credit facility with SVB Silicon Valley Bank
By Elaine Rigoli
Tampa, Fla., June 28 - ev3, Inc. said it has established a $37.5 million credit facility with SVB Silicon Valley Bank's Minneapolis office. The company also reaffirmed previous financial guidance for the second quarter and full year of 2006.
The credit facility consists of a two-year collateral-backed $30 million revolving line of credit and a $7.5 million line of equipment financing with a four-year maturity. The borrowing base of the revolving line is a percentage of the company's eligible receivables and inventory, according to a news release.
Borrowings made under the revolving line will bear interest at the Prime rate while equipment financing line is at Prime plus 100 basis points.
The company said this new facility, along with its existing cash and cash equivalents, provides ample liquidity and financial flexibility to meet the operating, strategic and corporate development needs of the company for the foreseeable future.
The facility contains covenants that, among other things, limit ev3's ability to sell assets, change the nature of its business, merge or consolidate with others, incur debt or liens or enter into transactions with affiliates. ev3 must also comply with certain financial covenants.
ev3 reaffirmed its previous guidance that it expects net sales in the second-quarter and full-year 2006 to be in the range of $45 million to $49 million and $196 to $208 million, respectively. The company noted further that it expects second-quarter sales to be closer to the high end of its previous guidance range.
ev3 also reaffirmed that it expects quarterly operating losses to be reduced during 2006 as compared to its quarterly operating losses for fiscal-year 2005.
ev3, located in Plymouth, Minn., is a global medical device company focused on endovascular technologies for the minimally invasive treatment of vascular diseases and disorders.
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