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Capital Royalty, NanoString Technologies Sign $45MM Term Loan

April 07, 2014, 07:26 AM
Filed Under: Life Sciences

NanoString Technologies, Inc., a provider of life science tools for translational research and molecular diagnostic products, today announced that it has entered into a term loan agreement with Capital Royalty L.P. and certain of its affiliates. The agreement provides NanoString with up to $45 million of available borrowing capacity.

"Together with the capital we have raised through recent equity offerings, the agreement with Capital Royalty provides the funding we need to continue to pursue our business plan aggressively," stated Brad Gray, Chief Executive Officer of NanoString. "The optional borrowing amounts provide added flexibility to fund other growth initiatives as opportunities arise."

Under the terms of the agreement, Capital Royalty will initially provide $30 million, of which $20 million will be borrowed up front to retire the company's existing loans with Oxford Finance and Silicon Valley Bank and $10 million will be borrowed within six months. Up to $15 million of additional funding will be available to the company, at its option, through May 2015, subject to the satisfaction of a revenue milestone and certain other borrowing conditions. The agreement has a term of six years, with quarterly payments of interest only for the first five years. At the Company's option, during the first four years a portion of the interest payments can be deferred and paid together with the principal in the sixth year.

"This transaction is another example of our strategy to partner with commercial stage life sciences businesses having high growth potential," said Charles Tate, Chairman of Capital Royalty L.P. "We are particularly excited by NanoString's opportunity to expand beyond its thriving research based business into diagnostics, initially with the Prosigna™ breast cancer assay."

Armentum Partners acted as financial advisor to NanoString for the debt transaction.

NanoString Technologies provides life science tools for translational research and molecular diagnostic products.

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