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NxStage Medical Establishes $50 Million Credit Facility with
a Group of Lenders Led by Merrill Lynch Capital
LAWRENCE, Mass., Nov. 21 /PRNewswire-FirstCall/ -- NxStage
Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of
innovative dialysis products, today announced that it has
entered into a $50.0 million credit and security agreement from
a group of lenders led by Merrill Lynch Capital, a division of
Merrill Lynch Business Services Inc., for a term of 42 months.
The credit facility consists of a $30.0 million term loan and a
$20.0 million revolving credit facility. The Company drew $25.0
million under the term loan at closing, with the remainder
expected to be drawn within the next six months. The Company
used $4.9 million of the proceeds from the term loan to repay
all amounts owed under a term loan with Silicon Valley Bank. The
initial draw under the term loan bears interest at a fixed rate
of 10.77% and requires payment of only interest until the end of
2008. Beginning on February 1, 2009 principal will be repaid in
29 equal monthly installments. The term loan has a final payment
fee of 3.0% to be paid at the time of loan payoff.
The $20.0 million revolving loan facility is based on a
percentage of the Company's eligible accounts receivable,
inventory and field equipment. The interest rate on the revolver
is one-month LIBOR plus 4.25%. The Company did not draw any
amounts under the revolver at closing; however, at the time of
closing the Company's borrowing base on the revolver was
approximately $13.0 million.
"This credit facility provides NxStage with additional financial
flexibility to support the growing needs of our commercial
operations," said Robert Brown, Chief Financial Officer. "We
believe this facility represents an attractive financing
alternative at a reasonable cost of capital."
About NxStage Medical
NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device
company, headquartered in Lawrence, Massachusetts, USA, that
develops, manufactures and markets innovative systems and
products primarily 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 the anticipated benefits of
the credit facility and expectations as to future growth in
NxStage's business. 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 market acceptance and
demand for NxStage's products, growth in home and/or daily
hemodialysis, 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 the
Annual Report on Form 10-K for the year ended December 31, 2006,
the Quarterly Report on Form 10-Q for the quarter ended
September 30, 2007 and the Definitive Proxy Statement filed on
September 12, 2007.
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.
Source
NxStage Medical, Inc.
-0- 11/21/2007
Contact
Stephanie Marks of NxStage Medical, Inc.,
+1-888-698-6472,
ir@nxstage.com /
www.nxstage.com /
(NXTM)
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