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GE Capital HFS Provides $10MM Credit Facility to CAS Medical Systems

July 01, 2014, 07:19 AM
Filed Under: Medical

CAS Medical Systems, Inc., a leader in medical devices for non-invasive patient monitoring, announced that on Friday, June 27, 2014, the Company entered into a Loan and Security Agreement (the "Loan Agreement") with General Electric Capital Corporation ("GECC").

Pursuant to the Loan Agreement, GECC is providing the Company with a secured term loan of $7.5 million and a revolving line of credit up to $2.5 million. The term loan and the revolver each mature on June 27, 2018.

"Obtaining this new credit facility is a key milestone in our initiative to bring CASMED to cash-flow breakeven from operations with largely non-dilutive sources of capital," said Tom Patton, CASMED's President and CEO. "We are pleased to have a high-caliber partner like GE Capital as our lender and look forward to working with them over the longer term as our Company expands and our credit needs evolve."

The term loan requires monthly principal repayments over 36 months commencing July 1, 2015, or over 30 months commencing January 1, 2016, if the Company reaches certain financial targets.

The Company's secured term loan of $5 million with East West Bank was repaid in full at the closing of the Loan Agreement, and the revolving line-of-credit with East West Bank, which had no outstanding balance, was terminated.

The Company was advised in the transaction by Armentum Partners.

CASMED is a leading developer and manufacturer of medical devices for non-invasive patient monitoring that are vital to patient care. The Company's FORE-SIGHT Absolute Cerebral Oximetry technology provides highly accurate, non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation.

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