NEW YORK (GenomeWeb) – NanoString Technologies said today that it has entered into a new $100 million term loan facility with the CR Group (CRG), a health care-focused investment firm.
NanoString will use an aggregate of $60 million in proceeds from an initial draw to refinance its existing CRG term loan facility, under which approximately $50 million is currently outstanding. NanoString will also use proceeds for working capital and general corporate purposes and for transaction-related fees and expenses.
According to NanoString, the financing reflects confidence on CRG's part in the growth potential of the company's existing nCounter franchise, and its anticipated new Digital Spatial Profiling platform.
NanoString CFO Thomas Bailey said in a statement that the new credit facility provides NanoString with approximately $8 million in immediate net proceeds after repaying its existing debt. The move also reduces the firm's interest rate, extends the maturity of the debt until late 2024, and provides the option to expand the facility for up to $40 million more.
In a description of additional terms of the deal, NanoString reported that of the $40 million of additional borrowing capacity, $20 million is available to it at any time up to June 30, 2019 without additional terms of conditions. The other $20 million is available after December 31, 2019 subject to NanoString achieving certain product and service revenue thresholds.
Payment terms of the loan are interest only for the entire term at a rate of 10.5 percent, including the option to elect to accrue up to 3 percent of interest cost in the form of additional term loan amounts.
Warrants to purchase an aggregate of 341,578 shares of common stock are being immediately issued to certain affiliates of CRG, and, in the event additional amounts are drawn, NanoString said an additional warrant will be issued on each subsequent draw date for an aggregate of 0.3 percent of its fully-diluted shares then outstanding.