Silicon Valley Bank replaced HTG Molecular Diagnostics’ existing senior credit facility with a $10 million senior term loan agreement.
HTG will use proceeds from the term loan to pay off its outstanding $7 million principal amount term loan with MidCap Financial and its $3 million principal amount subordinated convertible promissory note held by Qiagen North American Holdings. The duration of the senior term loan is 42 months, with interest only payments through June 30, 2021, plus six additional months under certain conditions.
The $3.2 million of restricted cash previously held in escrow under the company’s prior senior credit facility has been released and is available for use in the company’s operations.
“We are pleased to have the support of such a well-respected life science lender like SVB,” Shaun McMeans, senior vice president and CFO of HTG, said. “As we continue to execute upon our strategy of growing our core profiling business, building our portfolio with BioPharma and advancing our profiling products towards a diagnostic menu strategy, we believe that our relationship with SVB will be instrumental in allowing us to realize our value-building initiatives.”
“We are excited to support HTG Molecular Diagnostics with this new senior term loan,” Igor DaCruz, director of life science and healthcare at Silicon Valley Bank, said. “SVB has had a long-standing relationship with HTG and we look forward to our continued collaboration as the company pursues its next phase of growth in advancing precision medicine.”
