LAWRENCE, Mass., May 15 /PRNewswire-FirstCall/ -- NxStage Medical, Inc. , the manufacturer of the NxStage System One(TM) portable kidney dialysis machine, announced today it has established a credit facility with SVB Silicon Valley Bank, the commercial banking arm of SVB Financial Group .
The facility provides for borrowings of up to $20 million through December 31, 2007 with $8.0 million available at closing and an additional $12 million available through December 31, 2007 subject to certain covenants. “The credit line is a 24 month facility that will be used to provide additional working capital to finance installations of dialysis equipment in the field which will support our growth in the chronic market,” said David N. Gill, NxStage Medical’s Senior Vice President and Chief Financial Officer. “We are pleased to establish a long-term relationship with Silicon Valley Bank, a respected and established provider of banking services to emerging companies.”
“Silicon Valley Bank strives to provide NxStage Medical, and other emerging and established life science and technology companies, with creative solutions and diversified financial services that will help them execute their business objectives,” said Tom Davies, Senior Relationship Manager, Silicon Valley Bank.
About NxStage Medical:
NxStage Medical, Inc. is a medical device company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative dialysis systems for the treatment of end-stage renal disease, or ESRD, and acute kidney failure. For more information on NxStage and its products, please visit the company’s website at http://www.nxstage.com.
About SVB Silicon Valley Bank
SVB Silicon Valley Bank, a member of global financial services firm SVB Financial Group, provides commercial banking services to emerging growth and mature companies in the technology, life science, private equity and premium wine industries. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, SVB Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients’ success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through SVB Financial Group’s 27 U.S. offices and three international operations. More information on the company can be found at http://www.svb.com.
SVB Silicon Valley Bank refers to the commercial banking operation of SVB Financial Group, which includes Silicon Valley Bank, the California bank subsidiary of SVB Financial Group.
About End-Stage Renal Disease:
End-stage renal disease is the permanent failure of the kidneys to filter the body’s wastes. It is most commonly caused by diabetes, hypertension, or genetic disorders. In order to survive, ESRD patients must use some form of therapy to replace the function of the kidneys for the rest of their lives. Currently, over 450,000 patients in the United States suffer from ESRD, and the costs of treating ESRD patients are more than $20 billion annually in the U.S. Due to increases in diabetes, hypertension, and the aging of the U.S. population, those figures are projected to double within the next 10-15 years. The most common form of kidney replacement therapy in the United States today is hemodialysis, which is used by over 350,000 patients currently. The great majority of these patients are treated with conventional, in-center hemodialysis, in which they must travel to a nearby dialysis center three times per week, where they are connected to dialysis machines for treatments lasting approximately three to four hours, to cleanse their blood.
Forward-Looking Statements:
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. Examples of these forward-looking statements include statements as to the growth of the ESRD patient population, the anticipated demand for home dialysis products, the anticipated market acceptance and demand for NxStage’s products, expectations as to the future operating results and the adequacy of funding and the ability to obtain additional funding. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond NxStage’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements including growth in home or more frequent hemodialysis, market acceptance and demand for NxStage’s System One or the PureFlow SL, and certain other factors that may affect future operating results and the adequacy of funding, and which are detailed in NxStage’s filings with the Securities and Exchange Commission, including the Quarterly Report on Form 10-Q for the quarter ended March 31, 2006.
NxStage Medical, Inc.
CONTACT: David N. Gill, Senior Vice President & Chief Financial Officer ofNxStage Medical, Inc., +1-978-687-4700, dgill@nxstage.com
Web site: http://www.nxstage.com//
