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CRG Provides $100MM Credit Facility to NanoString Technologies

October 17, 2018, 07:00 AM
Filed Under: Life Sciences

NanoString Technologies, Inc., a provider of life science tools for translational research and molecular diagnostic products, announced that it has entered into a new $100 million term loan facility with the CR Group L.P. (CRG), a health care focused investment firm.

The proceeds of the initial draw under the CRG term loan facility, made in the aggregate principal amount of $60 million, will be used to refinance NanoString’s existing CRG term loan facility, under which approximately $50 million is currently outstanding, for working capital and general corporate purposes and for transaction-related fees and expenses.

“This financing illustrates the confidence of our existing capital partners at CRG in the health and growth trajectory of our core nCounter® franchise, as well as in the anticipated launch of our GeoMx™ Digital Spatial Profiling platform,” said Thomas Bailey, CFO of NanoString Technologies. “This new credit facility provides us with approximately $8 million in immediate net proceeds after repaying our existing debt, reduces our interest rate, and extends the maturity of our debt until late 2024. In addition, the new agreement provides us the option to expand the facility for up to $40 million more proceeds in the future.”

Key terms of the new CRG term loan facility include:

  • Proceeds: up to $100 million of gross proceeds, with $60 million drawn at close and up to $40 million in additional borrowings available at the Company’s option. Of the $40 million of additional borrowing capacity, $20 million is available at any time up to June 30, 2019 subject to no additional terms or conditions and $20 million is available after December 31, 2019 subject to the Company achieving certain product and service revenue thresholds.
  • Term: six years, maturing on September 30, 2024, adding approximately two and a half additional years until maturity as compared to the Company’s existing CRG term loan facility.
  • Payment Terms: interest only for the entire six year term, as compared to interest only through the first quarter of 2021 under the current CRG facility.
  • Interest: 10.5%, including the option to elect to accrue up to 3% of interest cost in the form of additional term loan amounts, as compared to 12% and 3.5% respectively under the current CRG facility.
  • Warrants: warrants to purchase an aggregate of 341,578 shares of common stock (representing 0.9% of the Company’s fully-diluted shares outstanding, assuming conversion of outstanding convertible securities, including the shares underlying the warrant) will be immediately issued to certain affiliates of CRG, and, in the event additional amounts are drawn, an additional warrant will be issued on each subsequent draw date for an aggregate of 0.3% of the fully-diluted shares then outstanding. The strike price for each warrant will be set at a 25% premium to the average closing trading price for the 30 trading days ending as of the date immediately before the applicable draw date.

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