Stereotaxis, a provider of advanced cardiology instrument control systems, has received a commitment letter from Silicon Valley Bank for an amended credit agreement that extends its revolving $30m credit facility to 31 March 2012.
Consistent with the current agreement, the revolving line of credit commitment includes a sublimit of $10m for advances guaranteed by two current shareholders and the commitment also provides an additional $10m term loan that matures on 1 January 2014.
Stereotaxis CEO Mike Kaminski said that their two primary objectives in negotiating an amendment to the facility were to extend the current revolving facility to March of 2012 and to obtain a longer maturity term loan to bridge the company’s capital structure through the repayment of other obligations due by the end of 2011.
“This combined facility allows for additional financial flexibility as we continue to focus on driving commercial success of our technology platforms,” Kaminski said.
The commitment is contingent upon the company raising $10m in additional equity, completion of definitive loan documents and other typical closing conditions as well as the recently completed extension of the $10 million guarantee from two shareholders.