Cerus closes $110 million debt facility with MidCap Financial

Cerus Corporation (NASDAQ: CERS) completed a new debt facility with MidCap Financial providing up to $110 million in financing. The facility consists of a 5-year term loan and an asset-backed revolving loan.

The company expects the refinancing to reduce annual cash interest expense by up to $3.5 million through lower borrowing costs and an approximately $30 million reduction in outstanding term loan balance. Initial proceeds from the loan, combined with cash on hand, were used to retire Cerus' existing $65 million term loan facility with MidCap.

The initial $35 million tranche was funded at closing, with up to an additional $30 million available in $5 million increments over the facility term. Amortization of the term loan is deferred for 48 months, followed by 12 months of straight line amortization. The facility may be prepaid at any time in increments of $5 million.

Cerus also entered into a new 5-year revolving loan agreement for up to $45 million, which provides increased capacity compared to previous arrangements.

"This refinancing marks another important milestone in strengthening our financial foundation," said Kevin Green, Cerus' chief financial officer. "The flexibility and increased borrowing capacity, extended maturities, and lower cost of capital provide us with greater financial optionality to support sustainable growth, improve our bottom line and execute our long-term strategic priorities."

Cerus Corporation develops and supplies pathogen reduction technologies and blood components to blood centers and hospitals. The company's INTERCEPT Blood System for platelets and plasma is available globally and has both CE mark and FDA approval.

The information is based on a company press release statement.

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