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NxStage Announces Credit Facility
Amendment
Company Completes First Step to Restructure Repayment
Schedule
LAWRENCE, Mass., March 16 /PRNewswire-FirstCall/ -- NxStage
Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of
innovative dialysis products, today announced that it has
entered into an amendment of its November 21, 2007 credit and
security agreement with a group of lenders led by GE Business
Financial Services Inc. The amendment postpones principal
payments under the term loan for three months, from April
through June 2009, decreases the minimum net revenue covenants
and adds certain minimum liquidity and minimum adjusted
consolidated EBITDA targets.
"This is an important first step in our plans to restructure the
repayment schedule on our credit facility," stated Robert Brown,
Chief Financial Officer of NxStage Medical. "We have made
meaningful progress in improving our business fundamentals and
appreciate the continuing support of our lenders. This amendment
provides the Company with additional flexibility to remain in
compliance with its terms and covenants, and the revised
facility terms reflect the impact of the current economic
conditions."
In connection with this amendment, the Company paid a $0.5
million amendment fee and agreed to increase the interest rate
on the facility's term loan from 10.42% to 11.12% per annum.
Interest on any borrowings under the revolving credit facility
now includes a LIBOR floor of 4% plus 6.5%. Previously, the
interest rate for the revolver had no floor on LIBOR. Additional
security was also provided by expanding the collateral base to
include all intellectual property held by NxStage.
About NxStage Medical
NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device
company, headquartered in Lawrence, Massachusetts, USA, that
develops, manufactures and markets innovative products 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.
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 this amendment to the credit
facility being an important first step in restructuring the
repayment schedule under the Company's credit facility. 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 unanticipated difficulties in further
restructuring the terms of this facility, and certain other
factors that may affect future operating results and which are
detailed in NxStage's filings with the Securities and Exchange
Commission, including its Quarterly Report on Form 10-Q for the
period ended September 30, 2008.
In addition, the statements in this press release represent
NxStage's expectations and beliefs as of the date of this press
release. NxStage anticipates that subsequent events and
developments may cause these expectations and beliefs to change.
However, while NxStage may elect to update these forward-looking
statements at some point in the future, it specifically
disclaims any obligation to do so, whether as a result of new
information, future events, or otherwise. These forward-looking
statements should not be relied upon as representing NxStage's
expectations or beliefs as of any date subsequent to the date of
this press release.
Contact
Kristen K. Sheppard, Esq.
Investor Relations
978-332-5923
ksheppard@nxstage.com
Source
NxStage Medical, Inc.
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