ST. LOUIS, Nov. 10, 2010 /PRNewswire-FirstCall/ — Stereotaxis,
STXS) announced today that the Company has received a
commitment letter from Silicon Valley Bank for an amended credit
agreement that extends its revolving $30 million credit facility to
March 31, 2012. Consistent with the current agreement, the
revolving line of credit commitment includes a sublimit of $10
million for advances guaranteed by two current shareholders.
The commitment also provides an additional $10 million term
loan that matures on January 1, 2014.
“Our two primary objectives in negotiating an amendment to the
facility were to extend the current revolving facility to March of
2012 and to obtain a longer maturity term loan to bridge the
Company’s capital structure through the repayment of other
obligations due by the end of 2011. This combined facility
allows for additional financial flexibility as we continue to focus
on driving commercial success of our technology platforms,” said
Mike Kaminski, Chief Executive Officer of Stereotaxis.
The commitment is contingent upon the Company raising $10
million in additional equity, completion of definitive loan
documents and other typical closing conditions as well as the
recently completed extension of the $10 million guarantee from two
shareholders. Stereotaxis reached an agreement with these
shareholders to extend their guarantee through March 31, 2012 in
exchange for warrants to purchase an aggregate of 800,000 shares of
Stereotaxis common stock. The exercise price of these shares
will be the greater of 10% above the November 2010 underwritten
offering price or the closing bid price on November 10, 2010.
Stereotaxis designs, manufactures and markets an advanced
cardiology instrument control system for use in a hospital’s
interventional surgical suite to enhance the treat