LAWRENCE, Mass.—NxStage Medical announced that it has secured a two-year $15 million revolving line of credit from Silicon Valley Bank (SVB).
The revolving line of credit is subject to a borrowing base of trade accounts receivable, inventory and field equipment and is secured by substantially all of the company's assets.
In connection with this agreement, NxStage amended its term loan and security agreement with Asahi to grant Asahi junior liens on certain of the Company's assets.
Borrowings under the agreement bear interest at a rate per annum equal to two percentage points above the prime rate (initial prime rate of 4 percent).
"This new credit facility provides additional financial flexibility at favorable interest rates to finance working capital needs as the business continues to grow and to seize future opportunities, when they arise," stated Robert Brown, chief financial officer of NxStage Medical. "We remain confident in our ability to achieve break-even adjusted EBITDA in the second quarter of 2010 and positive cash flow thereafter."
