Bacterin International secures accounts receivable credit facility

Bacterin International Holdings (AMEX:BONE) said Tuesday that it has secured an accounts receivable credit facility with mid-market lenders Midcap Financial and Silicon Valley Bank.
The developer of bone graft material and antimicrobial coatings for medical applications said the revolving loan facility allows the company to borrow up to $5 million through January 1, 2015.
The facility allows borrowings based on a pre-determined formula of up to 80 percent of Bacterin's eligible accounts receivable, as defined in the credit and security agreement.
"Due to the high working capital needs of our business associated with the necessity for our inventory to be consigned to our hospital accounts, the accounts receivable facility is an efficient way for Bacterin to access cash, from time to time, without diluting equity," said chairman and CEO, Guy Cook.
"Our strong relationships with Silicon Valley Bank and Midcap Financial helped us to secure this non-dilutive financing option, as we prepare for the next stage of growth at Bacterin International."
In late March, the company said that fourth quarter revenue increased sharply, while full year revenue almost doubled to record levels, with the company reaffirming its 2012 sales forecast.
For the quarter that ended December 31, revenue increased 72 percent to $9.1 million, compared to $5.3 million in the same period a year ago.
The increase was primarily attributed to continued market penetration, the company said, combined with the continued expansion of its direct sales force.
Bacterin's technology optimizes the growth factors in human allografts to promote bone, subchondral repair and dermal growth. These products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain, bone growth in foot and ankle surgery, cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
In the fourth quarter, two-year study results showed the company's flagship product, OsteoSponge, was equivalent to rhBMP-2 in spinal fusion, an important feature at a time when surgeons are moving away from rhBMP-2 because of concerns over complications, the company said.
OsteoSponge had already been used in 100,000 procedures prior to the release of the data, and the company expects this study to help further increase its market share.
In the fourth quarter, the company also said it "materially increased" the number of medical facilities in which its products are used, and began the doubling of operating capacity through the installation of new equipment.
Hospital accounts increased to 616 facilities, an increase of 27 percent over 484 facilities in the fourth quarter of 2010.
The company's medical device division also develops and licenses bioactive coatings for various medical device applications.