Daily News: November 25, 2013

Diamond Creek Provides Term Loan to Patient Safety

Patient Safety Technologies announced the closing of a $5 million senior secured term loan with Diamond Creek Capital, according to an 8-K dated November 22, 2013.

At close, $4 million of the term loan was funded. The company has the ability to draw an incremental $1 million under the term loan, subject to certain conditions. The five-year term loan matures in 2018 and bears interest at 13% per annum.

“Combined with our existing liquidity, the proceeds of this debt financing help better position the company to fund the continued growth of our business and gives us added resources to manage our supply chain. The accommodating terms and longer term maturity of the loan provides us added financial flexibility at a lower cost of capital than our historical capital raises,” stated Brian E. Stewart, president and CEO of Patient Safety Technologies.

Patient Safety Technologies, through its wholly owned operating subsidiary SurgiCount Medical, provides the Safety-Sponge® System, a solution clinically proven to improve patient safety and reduce healthcare costs by helping eliminate retained surgical sponges.