TransEnterix Secures $25MM from Oxford Finance, Silicon Valley Bank
TransEnterix, Inc. has expanded its existing agreement with Oxford Finance LLC and Silicon Valley Bank to provide for up to $25.0 million in growth capital.
“We are pleased to have expanded our relationship with Oxford and Silicon Valley Bank,” said Todd M. Pope, President and Chief Executive Officer of TransEnterix. “We anticipate that this financing provides us with up to three quarters of additional capital to satisfy our operating cash requirements.”
On September 26, 2014, the company entered into an amended and restated loan and security agreement (Loan Agreement) with Oxford Finance LLC and Silicon Valley Bank for a total loan amount of up to $25.0 million. The loan will mature on April 1, 2018, or October 1, 2018, if certain milestones are achieved. The Loan Agreement provides for up to three separate tranches of $10.0 million, $5.0 million and $10.0 million, respectively. At closing, the company increased its existing borrowings of approximately $5.6 million under the first tranche to the full $10.0 million. The availability of the second and third advances are dependent upon the company achieving specified milestones. The company is entitled to make interest only payments for 12 months which period is extended to 18 months based upon the achievement of certain milestones. The Loan Agreement includes customary warrant coverage and is secured by company assets. Proceeds will be used for general corporate and working capital purposes.