HeartWare International Inc. (NSDQ:HTWR) again tapped a new friend for some quick cash, taking out — and soon repaying — a $16 million loan last month with its erstwhile merger partner Thoratec Corp. (NSDQ:THOR).
The Dec. 17, 2009, transaction, disclosed late last week in regulatory documents, marks the second time the Framingham, Mass.-based cardiac assist device maker has borrowed money from Thoratec since the firms called off their proposed merger in July, 2009. HeartWare repaid the latest loan last Dec. 29, avoiding a possible conversion of the loan into stock by Thoratec.
As part of the busted merger pact, Thoratec agreed to help fund operations at HeartWare until the deal closed. A revised version of that agreement survived the now-terminated merger, with HeartWare borrowing $4 million in August. Coupled with the most recent loan, HeartWare has now exhausted its available credit line with Thoratec.
Officials at HeartWare, which last month also disclosed plans to raise up to $100 million in new funds over time, did not say why they borrowed the $16 million.