Cardiovascular Systems (NSDQ:CSII) said this week it closed the sale of its St. Paul, Minn.-based headquarters to Krishna Holdings for $21.5 million and inked a new revolving credit facility with Silicon Valley Bank.
The company said it received approximately $20.9 million from the sale of the facility after accounting for expenses, with funds slated to support working capital and for general corporate purposes.
Cardiovascular Solutions said that upon closing the sale, it entered into a new lease agreement with the new owner of the property with an initial 15 year term and 4 consecutive renewal options of 5 years each. The company will pay an annual base rent of $1.6 million for the 1st year with annual escalations of 3%, according to an SEC filing.
The company also touted a new $40 million revolver with Silicon Valley Bank, which the company said will support working capital and general corporate purposes.
“Adding this line of credit to our debt-free balance sheet strengthens our financial position and improves our flexibility. Silicon Valley Bank continues to be a key strategic partner for CSI as we seek to set the standard in safe, effective, economical medical devices that improve patient outcomes,” prez & CEO Scott Ward said in a press release.
“We’re pleased to provide this financing to CSI as the company drives important medical advancements for the large patient populations they serve. Our aim is to provide the CSI team with the right financing, connections and services they need to meet their corporate objectives,” SVB managing director Ben Johnson said in a prepared statement.