Spine Pain Management obtained $2 million credit facility with Wells Fargo Bank.
Here are five things to know about the credit facility:
1. Spine Pain Management opened a $2 million revolving line of credit with Wells Fargo Bank at attractive terms.
2. Peter Dalrymple, a recently-added director and second largest shareholder of Spine Pain Management secured the facility and bears a fluctuating interest rate of 2 percent plus one month LIBOR. The current rate is around 2.16 percent.
3. Mr. Dalrymple held a $1 million 12 percent note already, and agreed to the early redemption of $500,000 of that note. The interest rate also dropped to 6 percent and the terms on the remainder were extended one year to August 2016.
4. To facilitate the credit facility, Spine Pain Management issued Mr. Dalrymple 1 million restricted shares of common stock, with 300,000 shares currently vested and the remaining to vest each quarter as long as the revolving line of credit is in effect.
5. The new credit facility will allow Spine Pain Management to accelerate its legacy PI case growth and launch the Quad Video HALO.