LAWRENCE, Mass., Nov. 21 /PRNewswire-FirstCall/ -- NxStage Medical, Inc.
(Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today
announced that it has entered into a $50.0 million credit and security
agreement from a group of lenders led by Merrill Lynch Capital, a division of
Merrill Lynch Business Services Inc., for a term of 42 months.
The credit facility consists of a $30.0 million term loan and a $20.0
million revolving credit facility. The Company drew $25.0 million under the
term loan at closing, with the remainder expected to be drawn within the next
six months. The Company used $4.9 million of the proceeds from the term loan
to repay all amounts owed under a term loan with Silicon Valley Bank. The
initial draw under the term loan bears interest at a fixed rate of 10.77% and
requires payment of only interest until the end of 2008. Beginning on
February 1, 2009 principal will be repaid in 29 equal monthly installments.
The term loan has a final payment fee of 3.0% to be paid at the time of loan
payoff.
The $20.0 million revolving loan facility is based on a percentage of the
Company's eligible accounts receivable, inventory and field equipment. The
interest rate on the revolver is one-month LIBOR plus 4.25%. The Company did
not draw any amounts under the revolver at closing; however, at the time of
closing the Company's borrowing base on the revolver was approximately $13.0
million.
"This credit facility provides NxStage with additional financial
flexibility to support the growing needs of our commercial operations," said
Robert Brown, Chief Financial Officer. "We believe this facility represents
an attractive financing alternative at a reasonable cost of capital."
About NxStage Medical
NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company,
headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and
markets innovative systems and products primarily for the treatment of
end-stage renal disease, or ESRD, and acute kidney failure. For more
information on NxStage and its products, please visit the Company's website at
http://www.nxstage.com.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements contained
in this release that are not clearly historical in nature are forward-looking,
and the words "anticipate," "believe," "expect," "estimate," "plan," and
similar expressions are generally intended to identify forward-looking
statements. Examples of these forward-looking statements include statements as
to the anticipated benefits of the credit facility and expectations as to
future growth in NxStage's business. All forward-looking statements involve
risks, uncertainties and contingencies, many of which are beyond NxStage's
control, which may cause actual results, performance, or achievements to
differ materially from anticipated results, performance or achievements,
including market acceptance and demand for NxStage's products, growth in home
and/or daily hemodialysis, and certain other factors that may affect future
operating results and which are detailed in NxStage's filings with the
Securities and Exchange Commission, including the Annual Report on Form 10-K
for the year ended December 31, 2006, the Quarterly Report on Form 10-Q for
the quarter ended September 30, 2007 and the Definitive Proxy Statement filed
on September 12, 2007.
In addition, the statements in this press release represent NxStage's
expectations and beliefs as of the date of this press release. NxStage
anticipates that subsequent events and developments may cause these
expectations and beliefs to change. However, while NxStage may elect to update
these forward-looking statements at some point in the future, it specifically
disclaims any obligation to do so, whether as a result of new information,
future events, or otherwise. These forward-looking statements should not be
relied upon as representing NxStage's expectations or beliefs as of any date
subsequent to the date of this press release.
SOURCE NxStage Medical, Inc.
Contact:
Kristen K. Sheppard, Esq.
Vice President, Investor Relations
NxStage Medical Inc. (NXTM)
978/332-5923
Web site: http://www.nxstage.com
