Boston, MA 10/01/2014 (wallstreetpr) – A medical device company engaged in pioneering robotics use, Transenterix Inc (NYSEMKT:TRXC) disclosed that it was able to expand its current agreement with financial institutions, Silicon Valley Bank and Oxford Finance LLC, to provide a maximum of $25 million for growth capital.
Loan And Security Agreement
The company said that it has entered into an amended deal on September 26 paving the way for restating of loan, as well as, security agreement with Silicon Valley Bank and Oxford Finance LLC. The loan amount of a maximum of $25.0 million would mature either on April 1 or October 1 in 2018 subject to some milestones achievement.
As a result of the amended loan agreement, Transenterix Inc (NYSEMKT:TRXC) would be provided with a maximum of three tranches of loan consisting of $10 million, $5 million and $10 million respectively. It indicated that it could increase its current borrowings to $10 million at closing under the first tranche from the current $5.6 million.
The company would have to achieve some specific milestones to become eligible for availing the second and third tranches of loan. It has also been allowed the permission to pay only interest for 12 months, which could be extended to a maximum of 18 months on achieving some milestones set in the deal.
The agreed loan included coverage of customary warrant and was secured by its assets. The company plans to use the funds for working capital and general corporate purposes.
Management Comments
Transenterix Inc (NYSEMKT:TRXC) President and CEO, Todd Pope, expressed his happiness over the expanded credit limit with the two financial institutions and said that he expects the financing to provide a maximum of nine months of additional capital to convince its operating cash needs.
At the end of the second quarter, the company’s cash and cash equivalents position was $52.57 million. It has also raised aggregate gross proceeds of $50.0 million from the public issue of 12.5 million shares at the rate of $4.00 a share in April.
