A Medical Device Daily
IntriCon (Arden Hills, Minnesota), a developer of miniature and micro-miniature body-worn devices, said it has amended its credit facilities with The PrivateBank and Trust Company.
Terms of the amendment included:
• Extending the term of the $8 million revolving credit facility, with a subfacility for letters of credit, to mature in August 2014; and
• Increasing the company's term loan facility to $4 million, amortized in quarterly principal installments of $250,000, and an extension of the maturity to August 2014.
The $12 million in credit facilities includes London Interbank Offered Rate (LIBOR) interest rate options at varying rates based on funded debt to EBITDA levels.
Mark Gorder, president/CEO said “the extended terms and increased borrowing capacity of our amended credit facilities enhance IntriCon's financial flexibility and strengthen the company in both the short- and long-term. This amendment reinforces The PrivateBank's commitment to our strategic plan and their belief in our ability to execute our growth initiatives successfully. We're using the facilities to fund current growth opportunities, expand our low-cost manufacturing footprint and meet anticipated working capital requirements.“
In other financing activity, Unilife (York, Pennsylvania) has finalized a previously disclosed equipment financing agreement with Varilease Finance (Salt Lake City), for $10 million in available funding. This agreement will immediately replenish cash Unilife has previously invested to finance the automated assembly line now manufacturing the Unifill ready-to-fill (prefilled) syringe at its manufacturing facility in York.
Alan Shortall, CEO of Unilife, said, “One of our goals is to constantly seek innovative methods for financing our business expansion so as to minimize any immediate need for equity financings. The financing agreement with Varilease provides us with additional capital resources that we can use to support continued sales and marketing of the Unifill syringe to current and additional pharmaceutical customers, as well as to fast-track the commercialization of other exciting new pipeline products. We are building a relationship with Varilease that can lead to future financing agreements in order to support much of our anticipated capital equipment requirements as we continue to grow our business.
Established equipment-leasing financiers since 1987, the Varilease companies have financed more than $2 billion in assets worldwide. Unilife makes drug delivery systems with facilities in Pennsylvania. n