ev3 agrees to loan $2.3 million to Micro Therapeutics

By E. Janene Geiss

Philadelphia, Oct. 18 - Biopharmaceutical company ev3 Inc. has agreed to provide Micro Therapeutics, Inc. with a $2.3 million loan to be used for planned improvements and moving expenses, according to a form 8-K filed Tuesday with the Securities and Exchange Commission.

ev3, majority stockholder in Micro Therapeutics, provided the unsecured loan, which can be drawn down from time to time with an interest rate set at prime plus 230 basis points and payable in 36 consecutive monthly installments plus accrued interest, according to the filing.

Micro Therapeutics will use the financing for improving and moving into its new, leased 96,400-share-foot office building in Irvine, Calif. The five-year lease initially costs $68,000 a month and increases yearly over the term of the lease up to $92,542 a month, according to the filing.

In addition to the loan, ev3 Endovascular, Inc., a wholly-owned subsidiary of ev3, issued a $1 million standby irrevocable letter of credit in favor of Micro Therapeutics' landlord to provide Micro Therapeutics with additional financing to support the planned improvements, the filing said.

ev3 is a Plymouth, Minn.-based maker of endovascular medical technologies. Micro Therapeutics is a Irvine-based maker and marketer of integrated device and biological technologies.

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