TransEnterix announced that it has expanded its existing financing agreement with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) to provide for up to $30.0 million in growth capital, an increase from $25.0 million.
“We are pleased to have expanded our relationship with Oxford and SVB and achieved the milestones necessary to draw down the first $20 million of the loan,” said Todd M. Pope, President and Chief Executive Officer of TransEnterix. “Our strong cash position allows the Company to focus appropriately on the activities required to successfully commercialize and launch the SurgiBot.”
“We are pleased to continue our partnership with TransEnterix as they mature to their next phase of growth,” said Chris Stoecker, Managing Director of Silicon Valley Bank in North Carolina. “TransEnterix is bringing important advancements to the medical device industry and it is our objective to help them move their business forward quickly with the right financing, connections and global services.”
On August 14, 2015, the Company entered into an amendment to its amended and restated loan and security agreement (the “Loan Agreement”) with Oxford and SVB for a total loan amount of up to $30.0 million. At closing, due to the achievement of certain milestones, the company increased its existing borrowings to $20.0 million, up from $10.0 million. The availability of the third tranche of $10.0 million is dependent upon the company achieving certain milestones specified in the Loan Agreement. The loan will mature on October 1, 2018, or April 1, 2019, if certain milestones are achieved. The company is entitled to make interest only payments until May 1, 2016. The interest-only period is extended to November 1, 2016 if the Company receives 510(k) clearance for its SurgiBot System at any time prior to April 30, 2016. The Loan Agreement includes customary warrant coverage and is secured by Company assets. Proceeds will be used for general corporate and working capital purposes.
“Oxford is pleased to provide additional capital to TransEnterix as they prepare to enter into the commercialization phase with their SurgiBot System,” said Christopher A. Herr, senior managing director for Oxford Finance. “We value our relationship with the company, and we are proud of the remarkable advances TransEnterix has made to improve minimally invasive surgery.”
TransEnterix is a medical device company that is pioneering the use of robotics and flexible instruments to improve minimally invasive surgery by addressing the economic and clinical challenges associated with current laparoscopic and robotic options. The company is focused on the development and commercialization of the SurgiBot™ System, a robotically enhanced laparoscopic surgical platform that allows the surgeon to be patient-side within the sterile field. For more information, visit the company's website at www.transenterix.com.
Oxford Finance is a specialty finance firm providing senior secured loans to public and private life sciences and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets.
For more than 30 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world.