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United States. Securities and Exchange Commission

Stereotaxis, Inc. Extends Revolving Credit Facility with Silicon Valley Bank

Strategic Insights

— 1 min read

Stereotaxis, Inc., a Delaware-based company, has entered into a Tenth Loan Modification Agreement with Silicon Valley Bank to extend the maturity of its revolving credit facility from March 31, 2015, to March 31, 2018. This modification, announced on March 30, 2015, also revises the financial covenants under the agreement to maintain a liquidity ratio greater than 1.50:1.00 and a minimum tangible net worth of not less than negative $21,500,000 for certain quarters.

Key Takeaways:

  • Stereotaxis, Inc. has entered into a Tenth Loan Modification Agreement with Silicon Valley Bank to extend its revolving credit facility maturity from March 31, 2015, to March 31, 2018.
  • The modification revises the financial covenants under the agreement to maintain a liquidity ratio greater than 1.50:1.00 and a minimum tangible net worth of not less than negative $21,500,000 for certain quarters.
  • The agreement maintains the existing line capacity of $10 million, which was increased from $3 million in 2014.
  • Silicone Valley Bank's managing director, Ben Johnson, expressed his company's commitment to Stereotaxis and their partnership, stating that they look forward to working together to pursue clinical and commercial objectives.
  • Stereotaxis Chief Executive Officer, William C. Mills, emphasized the significance of the three-year credit agreement, citing its ability to finance growth opportunities and the company's continued improvement in financial performance.

Statistics:

  • The revolving credit facility maturity has been extended from March 31, 2015, to March 31, 2018.
  • The liquidity ratio covenant requires Stereotaxis to maintain a ratio greater than 1.50:1.00.
  • The tangible net worth covenant requires Stereotaxis to maintain a minimum net worth of not less than negative $21,500,000 for certain quarters.
  • The existing line capacity of $10 million was increased from $3 million in 2014.
  • The agreement is effective as of March 27, 2015.

Sources:

  • Form 8-K (Current Report) filed by Stereotaxis, Inc. with the Securities and Exchange Commission on March 30, 2015.
  • Stereotaxis, Inc. Press Release dated March 30, 2015, "Stereotaxis Extends Silicon Valley Bank Credit Facility by Three Years".
  • Securities and Exchange Commission, Statement of William C. Mills, Chief Executive Officer of Stereotaxis, Inc.

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