Proceeds to be used for debt retirement, working capital, acquisitions
By Devika Patel
Knoxville, Tenn., Aug. 1 - Bacterin International Holdings, Inc. negotiated a $15 million credit facility with MidCap Funding III, LLC and Silicon Valley Bank on July 29, according to an 8-K filed Monday with the Securities and Exchange Commission.
The facility matures in 42 months and bears interest at one-month Libor plus 750 basis points, with a Libor floor rate of 3%.
MidCap will also receive 7% warrant coverage. The warrants will be exercisable at $2.55 for seven years. The strike price is a 9.44% premium to the July 28 closing share price of $2.33.
Bacterin received a first tranche of $7 million at closing to retire its debt with Bridge Bank and Western Technology Investments, with the remaining proceeds of about $1.4 million to be used for working capital. A second tranche of $8 million will be used for potential acquisitions. In connection with the financing, Bacterin will reduce its debt service payments through April 30, 2012 by roughly $60,000 per month from current levels.
Bacterin is a Belgrade, Mont., developer of revolutionary bone graft material and anti-infective coatings for medical applications.
| Issuer: | Bacterin International Holdings, Inc.
|
| Issue: | Credit facility
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| Price: | $15 million
|
| Maturity: | 42 months
|
| Coupon: | One-month Libor plus 750 bps, floor of 3%
|
| Warrants: | 7% coverage
|
| Warrant expiration: | Seven years
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| Warrant strike price: | $2.55
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| Investors: | MidCap Funding III, LLC and Silicon Valley Bank
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| Settlement date: | July 29 (for $7 million)
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| Stock symbol: | Amex: BONE
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| Stock price: | $2.38 at close July 29
|
| Market capitalization: | $86.28 million
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