BELGRADE, Mont., Aug. 1, 2011 /PRNewswire/ — Bacterin
International Holdings, Inc. (NYSE Amex:
BONE), a leader in the development of revolutionary bone graft
material and anti-infective coatings for medical applications, has
secured a 42-month credit facility from MidCap Financial LLC and
Silicon Valley Bank (SVB) that provides a line of credit up to $15
million.
Bacterin received a first tranche of $7 million at closing to
retire all existing indebtedness with Bridge Bank and Western
Technology Investments, with the remaining net cash proceeds of
approximately $1.4 million to be used for working capital. A second
tranche of $8 million is available for potential future
acquisitions.
The 42-month financing carries interest only for the first nine
months at an annual interest rate of one month LIBOR plus 7.50%,
and straight-line amortization for the remaining 33 months. In
connection with the financing, Bacterin will reduce its debt
service payments through April 30, 2012 by approximately $60,000
per month from current levels.
As part of the financing, Bacterin has granted MidCap a warrant
to purchase shares of Bacterin’s common stock equal to 7% of the
amount drawn under the facility divided by the exercise price of
$2.55 per share.
“MidCap and SVB will be strong partners for Bacterin in helping
to fuel our growth,” said Guy Cook, Bacterin’s chairman and CEO.
“This new credit facility substantially improves our working
capital position while we continue to expand sales of our existing
biologics products, as well as enhance our newly acquired Robinson
MedSurg orthopedic implants with Bacterin’s anti-microbial coating
technology.”
Bacterin is pursuing the FDA market approval process to add its
anti-microbial coatings to the Robinson MedSurg’s product line, and
plans to submit a 510(k) application before the end of the year.
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