MidCap Financial provided a $30 million senior debt facility to HTG Molecular Diagnostics, a provider of instruments, reagents and services for molecular profiling applications. The new facility replaced the company’s existing senior credit facility, providing it with additional working capital.

The facility consists of a $7 million, five-year term loan to be funded at closing, with the ability to access another $13 million in an additional tranche through September 2019, subject to certain conditions. The facility also includes an initial $2 million revolving line of credit, secured by accounts receivable and inventory. The revolver is expandable to up to $10 million under certain conditions over a five-year period.

“We are extremely pleased to have the support of such a well-respected life science specialty finance firm like MidCap,” said TJ Johnson, president and CEO of HTG. “As HTG continues to build its portfolio with BioPharma and advance its diagnostic menu strategy, our relationship with MidCap, coupled with our strong balance sheet, allows us to focus on value building initiatives. This agreement provides flexible, non-dilutive financial capacity as we look to accelerate our strategies.”