Stereotaxis Receives Commitment to Increase and Extend Credit Facility
ST. LOUIS, Nov. 10, 2010 /PRNewswire-FirstCall/ -- Stereotaxis, Inc. (Nasdaq: STXS) announced today that the Company has received a commitment letter from Silicon Valley Bank for an amended credit agreement that extends its revolving $30 million credit facility to March 31, 2012. Consistent with the current agreement, the revolving line of credit commitment includes a sublimit of $10 million for advances guaranteed by two current shareholders. The commitment also provides an additional $10 million term loan that matures on January 1, 2014.
"Our two primary objectives in negotiating an amendment to the facility were to extend the current revolving facility to March of 2012 and to obtain a longer maturity term loan to bridge the Company's capital structure through the repayment of other obligations due by the end of 2011. This combined facility allows for additional financial flexibility as we continue to focus on driving commercial success of our technology platforms," said Mike Kaminski, Chief Executive Officer of Stereotaxis.
The commitment is contingent upon the Company raising $10 million in additional equity, completion of definitive loan documents and other typical closing conditions as well as the recently completed extension of the $10 million guarantee from two shareholders. Stereotaxis reached an agreement with these shareholders to extend their guarantee through March 31, 2012 in exchange for warrants to purchase an aggregate of 800,000 shares of Stereotaxis common stock. The exercise price of these shares will be the greater of 10% above the November 2010 underwritten offering price or the closing bid price on November 10, 2010.
Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital's interventional surgical suite to enhance the treat