Hansen Medical Closes Amended $33 Million Interest-Only Debt Facility Through
Amended Agreement Includes More Favorable Terms for the Company
MOUNTAIN VIEW, CA -- (Marketwired) -- 08/26/13 -- Hansen Medical,
Inc. (NASDAQ: HNSN), a global leader in intravascular robotics,
announced that it closed a $33 million, long-term debt agreement with
White Oak Global Advisors, LLC on August 23rd. The amended and
restated senior secured loan agreement includes terms more favorable
to Hansen Medical compared to the initial agreement disclosed on July
10, 2013, including the exclusion of intellectual property from the
loan's collateral, a reduction of the up-front facility fee, and
reductions of prepayment fees in the event of an early repayment of
the loan. The new facility will require quarterly interest-only
payments through December 30, 2017, at which time the Company will
also pay the principal balance.
This agreement provides Hansen Medical with a net liquidity
enhancement of approximately $25 million over the next 28 months
compared to the previous debt facility which required monthly
principal payments beginning earlier this month. The proceeds from
this new facility were used to retire the Company's previous $30
million debt facility, and related fees on August 23rd.
"We are pleased to have closed this long-term, interest-only credit
facility through December 30, 2017, providing us with a significant
liquidity enhancement over the next 28 months," said Peter J.
Mariani, Hansen Medical's Chief Financial Officer. "This new
facility, together with the recently announced private placement of
equity securities that could generate up to $93 million of gross
proceeds over the next two years, provide the company with a
foundation of long-term capital to continue to execute the commercial
launch of our Magellan(TM) Robotic System, drive further adoption of
our Sensei X(TM) Robotic System and strengthen operations across the
The new debt facility requires quarterly cash interest payments based
on an annual interest rate of 11.0%, plus additional interest of 3.0%
per annum which will accrue to the loan balance quarterly and become
payable, along with all principal, at the end of the loan term on
December 30, 2017. The agreement is a senior secured facility, and
maintains a similar covenant structure as the previous debt
agreement. No warrants were issued as part of the new debt facility.
Further information with respect to the new debt facility is
contained in a Current Report on Form 8-K to be filed today by Hansen
Medical with the Securities and Exchange Commission.
The DiBari Group acted as debt advisor to Hansen Medical for the new
About Hansen Medical, Inc.
Hansen Medical, Inc., based in Mountain
View, California, is a global leader in intravascular robotics,
developing products and technology designed to enable the accurate
positioning, manipulation and control of catheters and catheter-based
technologies. The Company's Magellan(TM) Robotic System, Magellan
Robotic Catheter and related accessories, which are intended to
facilitate navigation to anatomical targets in the peripheral
vasculature and subsequently provide a conduit for manual placement
of therapeutic devices, have undergone both CE marking and 510(k)
clearance and are commercially available in the European Union, and
the U.S. In the European Union, the Company's Sensei(R) X Robotic
Catheter System, Artisan Control Catheter and Artisan Extend(R)
Control Catheter are cleared for use during electrophysiology (EP)
procedures, such as guiding catheters in the treatment of atrial
fibrillation (AF), and the Lynx(R) Robotic Ablation Catheter is
cleared for the treatment of AF. This robotic catheter system is
compatible with fluoroscopy, ultrasound, 3D surface map and patient
electrocardiogram data. In the U.S. the Company's Sensei X Robotic
Catheter System and Artisan Control Catheter are cleared by the U.S.
Food and Drug Administration for manipulation and control of certain
mapping catheters in EP procedures. In the United States, the Sensei
System is not approved for use in guiding ablation procedures; this
use remains experimental. The U.S. product labeling therefore
provides that the safety and effectiveness of the Sensei X System and
Artisan Control Catheter for use with cardiac ablation catheters in
the treatment of cardiac arrhythmias, including AF, have not been
established. Additional information can be found at
White Oak Global Advisors, LLC
Based in San Francisco, White Oak
Global Advisors, LLC is an SEC-registered specialty finance company
that offers customized lending products and services to corporate
clients and investment management services to institutional clients.
For more information, visit www.whiteoaksf.com.
The DiBari Group, LLC
The DiBari Group is a financial advisory and
consulting firm dedicated to procuring debt capital for both public
and private companies in various stages of development. The firm has
supported high growth companies for over 11 years with an emphasis in
technology, healthcare and life sciences. For more information visit
This press release contains
forward-looking statements regarding, among other things, statements
relating to goals, plans, objectives, milestones and future events.
All statements, other than statements of historical fact, are
statements that could be deemed forward-looking statements, including
statements containing the words "plan," "expects," "potential,"
"believes," "goal," "estimate," "anticipates," and similar words.
These statements are based on the current estimates and assumptions
of our management as of the date of this press release and are
subject to risks, uncertainties, changes in circumstances and other
factors that may cause actual results to differ materially from the
information expressed or implied by forward-looking statements made
in this press release. Examples of such statements include statements
about the liquidity benefits of the new debt facility. Important
factors that could cause actual results to differ materially from
those indicated by forward-looking statements include, among others:
safety, engineering and regulatory challenges related to our
products; our ability to manage expenses and cash flow and obtain
additional financing; and other risks more fully described in the
"Risk Factors" section of our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2013 filed with the SEC on August 9, 2013 and
the risks discussed in our other reports filed with the SEC. Given
these uncertainties, you should not place undue reliance on the
forward-looking statements in this press release. We undertake no
obligation to revise or update information herein to reflect events
or circumstances in the future, even if new information becomes
Hansen Medical, Heart Design (Logo), Hansen Medical (with Heart
Design), Sensei and Artisan are registered trademarks, and Magellan
is a trademarks of Hansen Medical, Inc. in the United States and
Peter J. Mariani
Chief Financial Officer
Hansen Medical, Inc.
FTI Consulting, Inc.
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