Vascular adds $2 million line of credit, renews revolver

By Angela McDaniels

Seattle, Dec. 30 - Vascular Solutions Inc. amended its credit facility with Silicon Valley Bank, adding a $2 million equipment line of credit and renewing the revolving line of credit through Dec. 28, 2006, according to an 8-K report filed with the Securities and Exchange Commission on Thursday.

Borrowings under the line of credit carry an interest rate or prime plus 150 basis points. The Minneapolis-based biotechnology company said it has agreed to borrow at least $1 million of equipment advances on or before Jan. 6.

The renewed revolver is limited to the lesser of $5 million and 75% of the company's accounts together with 25% of its inventory. The interest rate is at prime plus 50 bps.

"Even though we did not borrow on our line of credit in 2005, with our investment in the new source of thrombin and new products planned for 2006, we believe that renewing the line of credit and adding the equipment line is beneficial," Howard Root, chief executive officer of Vascular Solutions, said in a news release.

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