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Silicon Valley Bank, Sunshine Heart Amend Debt Facility

December 09, 2015, 07:13 AM
Filed Under: Medical

Sunshine Heart, Inc. has amended its debt agreement with Silicon Valley Bank to modify the requirement that the company raise $20.0 million by March 31, 2016.

"It is a pleasure to continue to work with Silicon Valley Bank which is well established in the healthcare sector as a leading financial partner to emerging companies. We are pleased with the outcome and look forward to continue to strengthen our partnership with Silicon Valley Bank," commented John Erb, Chairman and Interim Chief Executive Officer of Sunshine Heart.

On December 8, 2015, the Company entered into an agreement with Silicon Valley Bank to modify the loan and security agreement that was signed on February 18, 2015, which had required that the Company complete an equity financing resulting in unencumbered net cash proceeds of at least $20.0 million by March 31, 2016. The amendment eliminates this requirement, replaces it with a requirement that the Company maintain eight months of cash and cash equivalents on its balance sheet and also increases the fees the Company will pay Silicon Valley Bank in connection with prepayments.

"We're pleased to continue our partnership with Sunshine Heart as they further develop their C-Pulse system," said Ben Johnson, Managing Director of Silicon Valley Bank. "This modification illustrates Silicon Valley Bank's commitment to increasing our clients' probability of success, as well as our ongoing commitment to support the global life science community." 

Sunshine Heart, Inc. is an early-stage medical device company focused on developing, manufacturing and commercializing the C-Pulse System for treatment of Class III and ambulatory Class IV heart failure. Sunshine Heart has completed an approved U.S. Food and Drug Administration (FDA) feasibility clinical study of the C-Pulse System and presented the results in November 2011. In March 2012, the FDA notified the Company that it could move forward with an investigational device exemption (IDE) application.

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