Cardiovascular Systems has instituted a $25 million credit facility with Silicon Valley Bank, and $4 million in convertible debt with Partners for Growth (PFG) for the consolidation of outstanding debt and the production of working capital.
According to the St. Paul, Minn.-based company, Silicon Valley has provided the company with a $10 million growth capital term loan and a $15 million line of credit that will be used towards working capital.
The engagement with PFG, a debt solution company, will provide Cardiovascular Systems the capability to draw a maximum of $4 million in the first 12 months as well as additional funds over the next four years for the conversion of debt to common stock. According to the company, $1.5 million of convertible debt was drawn by the company at the closing transaction. Also, the company issued PFG a warrant for up to 147,330 shares of its common stock purchased at $5.43 per share.
Cardiovascular Systems is looking to expand market growth for its Diamondback 360 system, a device used in the treatment of peripheral artery disease. The Diamondback system was approved by the FDA in August 2007 and has been utilized in more than 20,000 patient procedures, the company said.