A Medical Device Daily Staff Report
Svelte Medical Systems (New Providence, New Jersey) reported it has successfully completed the extension of its Series A financing from institutional and private investors The company's Series A extension was oversubscribed. The firm specializes in the field of medical technologies and is uniquely positioned to work collaboratively with emerging companies. The Norwich team is made up of former industry executives and entrepreneurs based in Massachusetts and Pennsylvania.
Svelte Medical Systems is a private company engaged in the development of highly deliverable balloon expandable stents with the focus to reduce time and cost in an angioplasty procedure. The company's "Stent-on-a-Wire" system is a low profile, highly flexible stent system which navigates the vasculature in a similar fashion to a traditional guidewire. This unique design may allow physicians to eliminate several steps in the current stenting procedure and reduce the need for some ancillary devices resulting in potential significant cost savings. The company is also pursuing a drug eluting version of its "stent-on-a-wire" design.
Emergency Medical Services Corporation (Greenwood Village, Colorado) said it has completed the financing of new senior secured credit facilities consisting of a $425 million 5-year term loan and a $150 million revolving credit facility, both of which will mature in 2015.
Proceeds from the new senior credit facilities and cash on hand have been used to repay the outstanding balance of the company's nearly $200 million term loan and also will be used to call its 10% senior subordinated notes, with an outstanding balance of $250 million. The call process on the senior subordinated notes was initiated immediately after the closing of the new facilities and is expected to be completed by mid-May.
The company anticipates that interest expense in 2010 will be nearly $27 to $28 million excluding any one-time costs related to the refinancing transaction, compared to $41 million in 2009.
The new $150 million revolving credit facility will replace the existing $100 million revolving credit facility. The new term loan is priced at LIBOR plus 300 bps, with no LIBOR floor. Terms of the credit facility include a step-down margin of LIBOR plus 275 bps when the company achieves a total leverage level below 1.2x and an ability to expand the credit facility based on certain leverage levels. In addition the company noted that Moody's Investors Service recently upgraded the Corporate Family Debt Rating to Ba1 from Ba2 in connection with this transaction.