Capital Royalty Provides $40M to Solta Medical
Solta Medical announced it closed a structured debt financing with Capital Royalty Partners. The transaction provides Solta with $40 million for working capital.
“With the completion of this secured debt agreement, we have the necessary working capital to aggressively pursue our plans for 2014 to regain momentum and revenue growth,” said Mark Sieczkarek, interim CEO of Solta Medical. “New sales leadership in North America and Europe, combined with significant changes in our sales and marketing approach, are already generating positive results. With the additional support of this financing, we are now in a stronger position to pursue and execute on our growth plan.”
Under the terms of the agreement, Capital Royalty will provide $40 million, $27 million of which will be used immediately to retire the existing loan with Silicon Valley Bank. The term debt has interest-only payments for the first four years and covenants, which are more tailored to the company’s growth plans as compared to more traditional bank debt.
“Our investment in Solta Medical is consistent with our focus on providing financing options for growing companies with commercial technologies,” said Luke Duster of Capital Royalty. “We are confident in the future opportunity for Solta’s aesthetic energy devices in today’s marketplace.”
Solta Medical is a global provider of medical aesthetics solutions with proven efficacy and safety backed by over 10 years of clinical study and research.