GE Capital HFS Closes CASMED Term Loan
CAS Medical Systems announced that the company entered into a loan and security agreement with GE Capital.
Pursuant to the loan agreement, GE Capital is providing the company with a secured term loan of $7.5 million and a revolving line of credit up to $2.5 million. The term loan and the revolver each mature on June 27, 2018.
“Obtaining this new credit facility is a key milestone in our initiative to bring CASMED to cash-flow breakeven from operations with largely non-dilutive sources of capital,” said Tom Patton, CASMED’s president and CEO. “We are pleased to have a high-caliber partner like GE Capital as our lender and look forward to working with them over the longer term as our company expands and our credit needs evolve.”
The term loan requires monthly principal repayments over 36 months commencing July 1, 2015, or over 30 months commencing January 1, 2016, if the company reaches certain financial targets.
The company’s secured term loan of $5 million with East West Bank was repaid in full at the closing of the loan agreement, and the revolving line-of-credit with East West Bank, which had no outstanding balance, was terminated.
The company was advised in the transaction by Armentum Partners.
CASMED is a developer and manufacturer of medical devices for non-invasive patient monitoring for patient care.