$20 M Loan Facility Led by GE Capital, Cytori Therapeutics (CYTX)
CYTX entered into a $20 M secured loan facility (6/14/10) from GE Capital, Healthcare Financial Services, Oxford Finance Corporation, and Silicon Valley Bank.
The funds will be used to support Cytori’s commercialization and clinical development activities in Europe, Asia and the United States. The loan, along with the $30 M raised from the recently completed Seaside 88, LP financing, strengthens Cytori’s cash position. CYTX anticipates that these amounts will fund the operations into 2012.
The loan term is 3 years at 9.9% with principal repayments beginning in 10 months. As part of the new loan, CYTX will use $4.4 M of the proceeds to refinance the loan previously entered into with GE Capital, Healthcare Financial Services and Silicon Valley Bank in 10/08. In addition, CYTX will issue warrants to the lenders to purchase 101,266 shares of common stock exercisable at $3.95 per share.
