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Solta Medical, Inc. (SLTM) Secures $40 Million Financing


11/18/2013 7:14:07 AM

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Solta Medical Secures $40 Million Financing

HAYWARD, Calif.
, Nov. 18, 2013 /PRNewswire/ -- Solta Medical, Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics market, today announced that it has closed a structured debt financing with Capital Royalty Partners L.P. The transaction provides Solta with $40 million for working capital.

"With the completion of this secured debt agreement, we have the necessary working capital to aggressively pursue our plans for 2014 to regain momentum and revenue growth," said Mark Sieczkarek, Interim CEO of Solta Medical. "New sales leadership in North America and Europe, combined with significant changes in our sales and marketing approach, are already generating positive results. With the additional support of this financing, we are now in a stronger position to pursue and execute on our growth plan."

Under the terms of the agreement, Capital Royalty will provide $40 million, $27 million of which will be used immediately to retire the existing loan with Silicon Valley Bank. The term debt has interest only payments for the first four years and covenants which are more tailored to the company's growth plans as compared to more traditional bank debt.

"Our investment in Solta Medical is consistent with our focus on providing financing options for growing companies with commercial technologies," said Luke Duster of Capital Royalty L.P. "We are confident in the future opportunity for Solta's aesthetic energy devices in today's marketplace."

About Solta Medical, Inc.

Solta Medical, Inc. is a global leader in the medical aesthetics market providing innovative solutions with proven efficacy and safety backed by over 10 years of clinical study and research. The company offers aesthetic energy devices for skin resurfacing and rejuvenation, acne reduction, body contouring and skin tightening, as well as tools and accessories to optimize the latest liposuction techniques. The Solta Medical portfolio includes the well-known brands Thermage®, Fraxel®, Clear + Brilliant®, Liposonix®, Isolaz®, CLARO®, VASERlipo, VASERshape, VASERsmooth, VentX®, PowerX®, TouchView®, and Origins, which collectively make up a comprehensive platform to address a range of aesthetic skin and body issues. More than two and a half million procedures have been performed with Solta Medical's products around the world. Solta Medical is headquartered in Hayward, CA with field teams and regional offices worldwide.

About Capital Royalty L.P.
Capital Royalty L.P. is a market pioneer and innovator in healthcare investing focused on intellectual property investments in approved products through structures including royalty bonds, secured debt, revenue interests and traditional royalty monetizations. Capital Royalty works directly with leading healthcare companies, research institutions and inventors to provide customized solutions to meet their unique financing needs. The value of each investment is based on the future revenue of commercialized biopharmaceutical products and medical technologies. Capital Royalty is actively making investments through Capital Royalty Fund II, which has $805 million of committed capital.

The firm is headquartered in Houston, Texas with offices in Boulder, Colorado and New York City. For additional information, please visit www.capitalroyalty.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the sufficiency of the Company's working capital and its plans to pursue its growth plans. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Solta Medical's actual results to differ materially from the statements contained herein. Factors that might cause such a difference include the risk that physician adoption of our systems does not grow, the risk that customers do not continue to purchase treatment tips, the possibility that the market for the sale of new products does not develop as expected, and the risks relating to Solta Medical's ability to achieve its stated financial goals as a result of, among other things, economic conditions and consumer and physician confidence causing changes in consumer and physician spending habits that affect demand for our products and treatments. Further information on potential risk factors that could affect Solta Medical's business and its financial results are detailed in its Form 10-K for the year ended December 31, 2012, and other reports as filed from time to time with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. Solta Medical undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

SOURCE Solta Medical, Inc.



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