Oxford Finance, SVB Provide Term Loan to Cytori
Cytori Therapeutics entered into a four-year, $27 million term loan with Oxford Finance and Silicon Valley Bank. The loan provides for an interest-only payment period of at least 12 months with the potential to be extended up to 18 months.
Proceeds were used to prepay Cytori’s existing loan with GE Capital, Oxford Finance and Silicon Valley Bank. The loan matures July 1, 2017. Cytori will issue warrants to Oxford Finance and Silicon Valley Bank for the right to purchase an aggregate of 596,553 shares of the company’s common stock at an exercise price per share of $2.26 for seven years.
“We worked closely with our lenders and were able to tailor a new loan that meets our specific needs,” said Mark E. Saad, chief financial officer, Cytori Therapeutics. “The loan provides an additional $8 million to help fund our ongoing operations, including clinical trial activities and reduces our near-term cash obligations by approximately $8 million to coincide with anticipated second half revenue growth.”
Cytori Therapeutics is developing cell therapies based on autologous adipose-derived regenerative cells to treat cardiovascular disease and other medical conditions.