NanoString Technologies, a provider of life science products, entered into a new $100 million term loan facility with the CR Group. (CRG), a health care focused investment firm.
The proceeds of the initial draw under the CRG term loan facility, made in the aggregate principal amount of $60 million, will be used to refinance NanoString’s existing CRG term loan facility, under which approximately $50 million is currently outstanding, for working capital and general corporate purposes and for transaction-related fees and expenses.
“This financing illustrates the confidence of our existing capital partners at CRG in the health and growth trajectory of our core nCounter franchise, as well as in the anticipated launch of our GeoMx Digital Spatial Profiling platform,” said Thomas Bailey, CFO of NanoString Technologies.
Key terms of the new facility include:
- Proceeds: up to $100 million of gross proceeds, with $60 million drawn at close and up to $40 million in additional borrowings available at the company’s option. Of the $40 million of additional borrowing capacity, $20 million is available at any time up to June 30, 2019 subject to no additional terms or conditions and $20 million is available after December 31, 2019 subject to the company achieving certain product and service revenue thresholds.
- Term: six years, maturing on September 30, 2024, adding approximately two and a half additional years until maturity as compared to the company’s existing CRG term loan facility.
- Payment Terms: interest only for the entire six-year term, as compared to interest only through the first quarter of 2021 under the current CRG facility.
- Interest: 10.5%, including the option to elect to accrue up to 3% of interest cost in the form of additional term loan amounts, as compared to 12% and 3.5% respectively under the current CRG facility.
NanoString Technologies provides life science tools for translational research and molecular diagnostic products.