PLANO, Texas, Feb. 20, 2018 (GLOBE NEWSWIRE) -- Nuvectra Corporation (NASDAQ:NVTR), a neurostimulation medical device company, announced today that it has reached an agreement with Silicon Valley Bank and Oxford Finance, the lenders of its existing credit facility, to secure a second amendment to the Company’s loan and security agreement for $45.0 million.
On February 16, 2018, the Company amended its loan and security agreement with Silicon Valley Bank and Oxford Finance to provide the Company with a $45.0 million term loan available in 3 tranche payments, from which the first tranche of $27.5 million was funded to repay the existing term loan in full, at the closing of the agreement.
In addition, on February 16, 2018 the Company drew down the second tranche commitment for $12.5 million following the achievement of the $20.0 million trailing six month product revenue milestone as of January 31, 2018. The third tranche commitment allows the Company to draw down another $5.0 million commencing on the date of achieving trailing six month product revenue of $25.0 million (the “Third Tranche Milestone”) and ending on the earlier of March 31, 2019 or sixty (60) days following the Third Tranche Milestone. The third tranche commitment replaces the existing $5.0 million revolving line commitment.
The amended agreement also extends the amortization period of the loan with principal payments scheduled to begin April 2020 based on the drawn second tranche.
Walter Berger, Chief Operating Officer & Chief Financial Officer, commented, “We are pleased to announce the amended loan and security agreement that provides the Company with greater financial flexibility and an extended amortization period. This agreement, together with our recently completed follow-on common stock offering that raised approximately $26.0 million in gross proceeds, will allow the Company to continue to drive our U.S. commercial expansion of the Algovita® system and plan our entry into the SNM market. We appreciate our continued relationship with Silicon Valley Bank and Oxford Finance and their continued confidence in our ability to execute on our near and long term corporate initiatives.”
About Nuvectra Corporation
Nuvectra™ is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. The Algovita® Spinal Cord Stimulation (SCS) System is our first commercial offering and is CE marked and FDA approved for the treatment of chronic intractable pain of the trunk and/or limbs. Our innovative technology platform also has capabilities under development to support other indications such as sacral neuromodulation (SNM) for the treatment of overactive bladder, and deep brain stimulation (DBS) for the treatment of Parkinson’s Disease. In addition, our NeuroNexus subsidiary designs, manufactures and markets leading-edge neural-interface technologies for the neuroscience clinical research market. Visit the Nuvectra website at www.nuvectramed.com.
About Silicon Valley Bank
For 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com.
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior secured loans to public and private life sciences and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $4 billion in loans, with lines of credit ranging from $5 million to $100 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in San Diego, California; Palo Alto, California; and the greater Boston and New York City areas. For more information, visit oxfordfinance.com.
