Bacterin International Holdings, a developer of bone graft materials and antmicrobial coatings for various medical purposes, has secured accounts receivable credit From Midcap financial LLC and Silicon Valley Bank.
Under the revolving loan credit facility, Bacterin can borrow up to $5 Million through January 1, 2015, based on 80 percent of the compant's accounts receivable.
Based in Bethesda, MD, MidCap Financial focuses on asset-based capital loans to healthcare providers, leveraged loans backed by private equity sponsors, life sciences loans to both venture capital-backed and public companies in the biotech and healthcare tech arenas, and real estate loans for nursing facilties, senior housing and medical offices.
Silicon Valley Bank specializes in technological applications for the life sciences and clean energy, as well as private equity and the premium wine business. The bank provides industry connections and financing through 27 offices in the U.S and seven other offices around the world.
“Due to the high working capital needs of our business associated with the necessity for our inventory to be consigned to our hospital accounts, the accounts receivable facility is an efficient way for Bacterin to access cash, from time to time, without diluting equity," said Guy Cook, Chairman and CEO of Bacterin. "Our strong relationships with Silicon Valley Bank and Midcap Financial helped us to secure this non-dilutive financing option, as we prepare for the next stage of growth at Bacterin International."
The company markets biological products with a heavy emphasis on bone grafts, skin grafts and stem cells. Their products find application in areas such as spinal surgery, back pain relief, promoting post-operation bone growth after foot and ankle surgery, promoting healing after neurosurgery.
The company's OsteoSponge product for bone grafts was recently found effective by peer review.
Edited by
Braden Becker
