Wells Fargo Provides $2MM Spine Pain Facility
Spine Pain Management announced the opening of a $2 million revolving line of credit with Wells Fargo bank at attractive terms.
“The facility is secured by a personal guarantee of SPIN’s recently added director and second largest shareholder,” Peter Dalrymple, and bears a fluctuating interest rate of 2% plus the one month LIBOR which gives a current rate of approximately 2.16%.
In addition, Dalrymple, who held a $1 million 12% note, agreed to the early redemption of $500,000 of the note and the reduction of the interest rate to 6% while also extending the term on the remainder by one year to August of 2016. In order to facilitate the above, the company issued to Dalrymple a total of one million restricted shares of common stock. 300,000 of the shares are currently vested with the remaining 700,000 shares to vest each quarter so long as the revolving line of credit remains in effect.
William F. Donovan, MD, CEO of Spine Pain Management, “We could not be happier with this total win-win for all shareholders of SPIN. With this new credit facility, SPIN should now have the available capital to accelerate its legacy PI case growth and properly launch its Quad Video HALO. This was all made possible by the continued confidence in SPIN of Peter Dalrymple, a proven successful business executive who has joined our Board.”
Spine Pain Management is a medical equipment and healthcare solution company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents.