MOUNTAIN VIEW, CA--(Marketwired - August 26, 2013) - Hansen Medical, Inc. (NASDAQ: HNSN), a global leader in intravascular robotics, announced that it closed a $33 million, long-term debt agreement with White Oak Global Advisors, LLC on August 23rd. The amended and restated senior secured loan agreement includes terms more favorable to Hansen Medical compared to the initial agreement disclosed on July 10, 2013, including the exclusion of intellectual property from the loan's collateral, a reduction of the up-front facility fee, and reductions of prepayment fees in the event of an early repayment of the loan. The new facility will require quarterly interest-only payments through December 30, 2017, at which time the Company will also pay the principal balance.
This agreement provides Hansen Medical with a net liquidity enhancement of approximately $25 million over the next 28 months compared to the previous debt facility which required monthly principal payments beginning earlier this month. The proceeds from this new facility were used to retire the Company's previous $30 million debt facility, and related fees on August 23rd.
"We are pleased to have closed this long-term, interest-only credit facility through December 30, 2017, providing us with a significant liquidity enhancement over the next 28 months," said Peter J. Mariani, Hansen Medical's Chief Financial Officer. "This new facility, together with the recently announced private placement of equity securities that could generate up to $93 million of gross proceeds over the next two years, provide the company with a foundation of long-term capital to continue to execute the commercial launch of our Magellan™ Robotic System, drive further adoption of our Sensei X™ Robotic System and strengthen operations across the Company."
The new debt facility requires quarterly cash interest payments based on an annual interest rate of 11.0%, plus additional interest of 3.0% per annum which will accrue to the loan balance quarterly and become payable, along with all principal, at the end of the loan term on December 30, 2017. The agreement is a senior secured facility, and maintains a similar covenant structure as the previous debt agreement. No warrants were issued as part of the new debt facility. Further information with respect to the new debt facility is contained in a Current Report on Form 8-K to be filed today by Hansen Medical with the Securities and Exchange Commission.
The DiBari Group acted as debt advisor to Hansen Medical for the new debt agreement.
About Hansen Medical, Inc.
Hansen Medical, Inc., based in Mountain View, California, is a global leader in intravascular robotics, developing products and technology designed to enable the accurate positioning, manipulation and control of catheters and catheter-based technologies. The Company's Magellan™ Robotic System, Magellan Robotic Catheter and related accessories, which are intended to facilitate navigation to anatomical targets in the peripheral vasculature and subsequently provide a conduit for manual placement of therapeutic devices, have undergone both CE marking and 510(k) clearance and are commercially available in the European Union, and the U.S. In the European Union, the Company's Sensei® X Robotic Catheter System, Artisan Control Catheter and Artisan Extend® Control Catheter are cleared for use during electrophysiology (EP) procedures, such as guiding catheters in the treatment of atrial fibrillation (AF), and the Lynx® Robotic Ablation Catheter is cleared for the treatment of AF. This robotic catheter system is compatible with fluoroscopy, ultrasound, 3D surface map and patient electrocardiogram data. In the U.S. the Company's Sensei X Robotic Catheter System and Artisan Control Catheter are cleared by the U.S. Food and Drug Administration for manipulation and control of certain mapping catheters in EP procedures. In the United States, the Sensei System is not approved for use in guiding ablation procedures; this use remains experimental. The U.S. product labeling therefore provides that the safety and effectiveness of the Sensei X System and Artisan Control Catheter for use with cardiac ablation catheters in the treatment of cardiac arrhythmias, including AF, have not been established. Additional information can be found at www.hansenmedical.com.
White Oak Global Advisors, LLC
Based in San Francisco, White Oak Global Advisors, LLC is an SEC-registered specialty finance company that offers customized lending products and services to corporate clients and investment management services to institutional clients. For more information, visit www.whiteoaksf.com.
The DiBari Group, LLC
The DiBari Group is a financial advisory and consulting firm dedicated to procuring debt capital for both public and private companies in various stages of development. The firm has supported high growth companies for over 11 years with an emphasis in technology, healthcare and life sciences. For more information visit www.dibarigroup.com.
This press release contains forward-looking statements regarding, among other things, statements relating to goals, plans, objectives, milestones and future events. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "plan," "expects," "potential," "believes," "goal," "estimate," "anticipates," and similar words. These statements are based on the current estimates and assumptions of our management as of the date of this press release and are subject to risks, uncertainties, changes in circumstances and other factors that may cause actual results to differ materially from the information expressed or implied by forward-looking statements made in this press release. Examples of such statements include statements about the liquidity benefits of the new debt facility. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include, among others: safety, engineering and regulatory challenges related to our products; our ability to manage expenses and cash flow and obtain additional financing; and other risks more fully described in the "Risk Factors" section of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 filed with the SEC on August 9, 2013 and the risks discussed in our other reports filed with the SEC. Given these uncertainties, you should not place undue reliance on the forward-looking statements in this press release. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available.
Hansen Medical, Heart Design (Logo), Hansen Medical (with Heart Design), Sensei and Artisan are registered trademarks, and Magellan is a trademarks of Hansen Medical, Inc. in the United States and other countries.