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Home » NxStage locks in $15 million credit line from Silicon Valley Bank

NxStage locks in $15 million credit line from Silicon Valley Bank

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NxStage Medical Inc. (NSDQ:NXTM) took advantage of favorable interest rates to lock up some more working capital, possibly for future acquisitions.

The Lawrence, Mass.-based portable dialysis maker said it has secured a two-year revolving line of credit for $15 million with Silicon Valley Bank at an interest rate of about 6 percent annually.

NxStage said it would use the debt to “finance working capital needs as the business continues to grow and to seize future opportunities, when they arise,” CFO Robert Brown, said in prepared remarks.

The company also announced that it had reworked last year’s financing deal with Asahi Kasei Kuraray Medical to grant the Japanese distributor junior liens on some of its assets.

Last May, NxStage signed a dealto private label its dialyzer under the Asahi name from its facility in Germany, in return for $40 million in debt financing. The loan helped NxStage get out from under a GE credit facility that carried an 11 percent interest rate.

Meanwhile, the terms of the Asahi deal provided for an 8 percent interest rate, with 50 percent deferred to maturity of the four-year loan term. If the loan does mature, Asahi can take payment in shares of NxStage stock.

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