East West Bank loan replaces facility with Oxford Finnce, Silicon Valley
By Devika Patel
Knoxville, Tenn., Feb. 3 – CareDx, Inc. said it arranged a $20 million credit facility with East West Bank. The deal will settle in two tranches of $16 million and $4 million and replaces a $10 million credit facility with Oxford Finance and Silicon Valley Bank that was set to expire in 2016.
The loan initially bears interest at 5.25%, but the coupon floats with the Prime rate.
The investor also will receive 34,483 warrants. The warrants are each exercisable at $6.96 for five years. The strike price reflects a 1.28% discount to the Feb. 2 closing share price of $7.05.
The Brisbane, Calif., company has developed a blood-based test used to monitor heart transplant recipients for acute cellular rejection.
| Issuer: | CareDx, Inc.
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| Issue: | Credit facility
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| Amount: | $20 million
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| Coupon: | 5.25%
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| Warrants: | 34,483
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| Warrant expiration: | Five years
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| Warrant strike price: | $6.96
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| Investor: | East West Bank
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| Pricing date: | Feb. 3
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| Stock symbol: | Nasdaq: CDNA
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| Stock price: | $7.05 at close Feb. 2
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| Market capitalization: | $86.52 million
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