A Medical Device Daily
RTI Biologics (Alachua, Florida), a processor of orthopedic, dental, surgical specialties and other biologic implants, reported that it has signed new financing agreements with Mercantile Bank, a division of Carolina First Bank.
The new financing agreements consist of a $1.75 million term loan and a $10 million line of credit. The loans bear interest at LIBOR plus 2.5% to 3.25% and are secured by accounts receivable and inventory in the U.S.
"We are pleased that our company is able to enter into this agreement with Mercantile Bank in this environment with favorable terms," said Thomas Rose, RTI's executive VP/CFO. "This financing agreement effectively replaces our prior line of credit, and it will serve to supplement our working capital."
In addition to its Florida headquarters, RTI has facilities in Neunkirchen, Germany, and Aix-en-Provence, France.
In other financing news:
• QLT (Vancouver, British Columbia) reported the final results of its previously disclosed modified Dutch auction tender offer which expired on Jan. 26.
QLT has accepted for purchase and cancellation 20 million of its common shares at a price of $2.50 per share, for a total cost of $50 million. The purchased shares represent about 26.8% of the shares outstanding as of expiration date. With the completion of the offer, QLT said it now has about 54.6 million shares outstanding.
Goldman, Sachs & Co. and BMO Capital Markets served as dealer managers for the offer. Georgeson Shareholder Communications Canada served as information agent and Computershare Investor Services served as the depository.
QLT's research and development efforts are focused on pharmaceutical products in the field of ophthalmology. In addition, the company utilizes three technology platforms photodynamic therapy, Atrigel and punctal plugs with drugs to create products such as Visudyne and Eligard and future product opportunities.
• Clarient (Aliso Viejo, California), an anatomic pathology and molecular testing services resource for pathologists, oncologists and the pharmaceutical industry, reported that it has extended the maturities of $19.25 million in existing credit facilities with Gemino Healthcare Finance and Comerica Bank, as part of its initiative to refinance all of its credit facilities. Interest rates on Clarient's extended Gemino and Comerica credit facilities, which are used for working capital purposes, remain unchanged.
Clarient, which reported 17 consecutive quarters of sequential revenue growth for the period ended Sept. 30, 2008, extended an $8 million revolving credit facility with Philadelphia-based Gemino to Feb. 27. Borrowings under the arrangement, which stood at $5.4 million as of Sept. 30, 2008, were due Jan. 31, and are secured by Clarient's accounts receivable.
Comerica Bank continues to provide Clarient with a $9 million credit facility and $2.25 million line of credit. Clarient has borrowed $9 million under the agreement, which now matures March 31. The Comerica agreement requires maintenance of certain minimum levels of adjusted earnings before interest, taxes, depreciation and amortization, and was due Feb. 26 under terms of previous extensions.
• Safeguard Scientifics (Wayne, Pennsylvania) which owned 58% of Clarient common stock as of Sept 30, 2008, has guaranteed Clarient's Comerica borrowings.
Clarient CEO, Ron Andrews said, "Gaining this extension allows us to align our debt expiration with our plan for capitalization. We have very strong relationships with our investors and debt holders, and this extension is indicative of their belief in the future of our company. Despite the current market turmoil, Clarient believes that it is in a solid position to complete longer term financing within the extension period."