CSI establishes $25M credit facility with Silicon Valley Bank

Cardiovascular Systems, Inc. (CSI) (Nasdaq: CSII), announced today that it has established a $25 million credit facility with Silicon Valley Bank and up to $4 million in convertible debt with Partners for Growth. Proceeds will be used to consolidate existing outstanding debt, provide working capital for growth and for general corporate purposes.

“We are focused on advancing our priorities for growth: expanding adoption of the Diamondback 360® for treatment of peripheral arterial disease (PAD), conducting prospective PAD clinical trials, introducing enhanced versions of the Diamondback 360° and expanding our technology for use in the coronary market.”

"This financing enhances the company's financial flexibility as we continue to grow our business and work toward profitability and positive cash flow," said David L. Martin, president and CEO of Cardiovascular Systems. "We are focused on advancing our priorities for growth: expanding adoption of the Diamondback 360^® for treatment of peripheral arterial disease (PAD), conducting prospective PAD clinical trials, introducing enhanced versions of the Diamondback 360° and expanding our technology for use in the coronary market."

The Silicon Valley Bank facility consists of a $10 million growth capital term loan and a $15 million line of credit for working capital. The Partners for Growth convertible debt provides the ability to draw up to $4 million in the first 12 months and additional funds over the subsequent four years to the extent debt is converted to common stock. Upon closing the transaction, $1.5 million of convertible debt was drawn by CSI. In addition, CSI issued Partners for Growth a warrant for up to 147,330 shares of its common stock at $5.43 per share.