Bacterin receives $15 million credit facility from MidCap Financial and Silicon Valley Bank

Bacterin International Holdings (AMEX:BONE) announced Tuesday it secured a 42 month-long, $15 million credit facility with MidCap Financial LLC and Silicon Valley Bank.
The developer of bone graft materials and anti-infective coatings for medical applications received the first $7.0 million tranche to close its debt with Bridge Bank and Western Technology Investments through to the end of April 2012, via $60,000 per month.
The remaining $1.4 million will be used for working capital, Bacterin said.
A second, $8.0 million tranche is available to the company for future acquisitions.
"MidCap and [Silicon Valley Bank] will be strong partners for Bacterin in helping to fuel our growth," said CEO Guy Cook.
"This new credit facility substantially improves our working capital position while we continue to expand sales of our existing biologics products."
The financing carries interest for the first nine months alone, at an annual interest rate of one month LIBOR plus 7.5%. The remaining 33 months are subject to straight-line amortization.
Under the terms of agreement, Bacterin has issued a warrant for MidCap, which focuses on middle market lending in healthcare, to purchase common shares of Bacterin, equaling 7% of the amount drawn under the credit facility, divided by the $2.55 exercise price.
In other news, Bacterin said it is pursuing FDA market approval for its anti-microbial coatings to Robinson MedSurg's product line, which distributes implantable medical devices for maxillofacial (referring to the mouth, jaw and neck), craniofacial, and orthopedic uses.
The Belgrade, Montana-based company said it expects to submit a 510(k) medical device notification form to the FDA by the end of the year. Once approved, the company expects it will be the only company to offer these medical devices with anti-microbial coatings.