Post by icemandios on Nov 15, 2022 14:06:50 GMT
ViewRay Expands Access to Non-Dilutive Capital With New Debt Facility
PR Newswire
Facility includes senior secured term loan of up to $100 million and a revolving line of credit of up to $25 million
DENVER , Nov. 14, 2022 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) (the "Company") today announced that it has entered into a new five-year loan facility agreement with MidCap Financial and Silicon Valley Bank (the "Agreement"). The Agreement consists of a term loan of up to $100 million and a revolving line of credit of up to $25 million .
"We are pleased with the expansion of our partnership with Silicon Valley Bank and for MidCap's desire to participate in providing ViewRay with important non-dilutive capital to fuel our growth," said Zach Stassen , Chief Financial Officer of ViewRay. "This capital comes at an important time, where we are preparing for meaningful growth in the coming years."
Key elements of the term loan under the Agreement are as follows:
The term loan commitment is up to $100 million , $25 million of which the Company may elect to access upon achieving a gross margin target for the 2023 fiscal year.
At close, the Company drew $75 million , $60 million of which will be used to retire its existing debt with Silicon Valley Bank.
The annual interest rate is equal to the WSJ Prime rate plus 3.5% with a floor of 9.25%.
The maturity date is five years, with three years of interest only payments. The Company holds the option to extend the interest only period for one additional year.
Key elements of the revolving line of credit under the Agreement are as follows:
The revolving line of credit provides up to $25 million , comprised of an initial $15 million commitment, with the option to increase the line by an additional $10 million , subject to lender approval and borrowing base availability.
At close, the Company drew $5 million to enhance its working capital in anticipation of accelerating growth.
The annual interest rate is equal to WSJ Prime rate plus 0.5% with a floor of 6.25%.
The term is five years.
About ViewRay®
ViewRay, Inc. (Nasdaq: VRAY), designs, manufactures, and markets the MRIdian® MR-Guided Radiation Therapy System. MRIdian is built upon a proprietary high-definition MR imaging system designed from the ground up to address the unique challenges and clinical workflow for advanced radiation oncology. Unlike MR systems used in diagnostic radiology, MRIdian's high-definition MR was purpose-built to address specific challenges, including beam distortion, skin toxicity, and other concerns that potentially may arise when high magnetic fields interact with radiation beams. ViewRay and MRIdian are registered trademarks of ViewRay, Inc.
PR Newswire
Facility includes senior secured term loan of up to $100 million and a revolving line of credit of up to $25 million
DENVER , Nov. 14, 2022 /PRNewswire/ -- ViewRay, Inc. (Nasdaq: VRAY) (the "Company") today announced that it has entered into a new five-year loan facility agreement with MidCap Financial and Silicon Valley Bank (the "Agreement"). The Agreement consists of a term loan of up to $100 million and a revolving line of credit of up to $25 million .
"We are pleased with the expansion of our partnership with Silicon Valley Bank and for MidCap's desire to participate in providing ViewRay with important non-dilutive capital to fuel our growth," said Zach Stassen , Chief Financial Officer of ViewRay. "This capital comes at an important time, where we are preparing for meaningful growth in the coming years."
Key elements of the term loan under the Agreement are as follows:
The term loan commitment is up to $100 million , $25 million of which the Company may elect to access upon achieving a gross margin target for the 2023 fiscal year.
At close, the Company drew $75 million , $60 million of which will be used to retire its existing debt with Silicon Valley Bank.
The annual interest rate is equal to the WSJ Prime rate plus 3.5% with a floor of 9.25%.
The maturity date is five years, with three years of interest only payments. The Company holds the option to extend the interest only period for one additional year.
Key elements of the revolving line of credit under the Agreement are as follows:
The revolving line of credit provides up to $25 million , comprised of an initial $15 million commitment, with the option to increase the line by an additional $10 million , subject to lender approval and borrowing base availability.
At close, the Company drew $5 million to enhance its working capital in anticipation of accelerating growth.
The annual interest rate is equal to WSJ Prime rate plus 0.5% with a floor of 6.25%.
The term is five years.
About ViewRay®
ViewRay, Inc. (Nasdaq: VRAY), designs, manufactures, and markets the MRIdian® MR-Guided Radiation Therapy System. MRIdian is built upon a proprietary high-definition MR imaging system designed from the ground up to address the unique challenges and clinical workflow for advanced radiation oncology. Unlike MR systems used in diagnostic radiology, MRIdian's high-definition MR was purpose-built to address specific challenges, including beam distortion, skin toxicity, and other concerns that potentially may arise when high magnetic fields interact with radiation beams. ViewRay and MRIdian are registered trademarks of ViewRay, Inc.