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NanoString Inks Loan Agreement for up to $45M

NEW YORK (GenomeWeb News) – NanoString Technologies said after the close of the market on Thursday it has reached a term loan agreement with Capital Royalty and certain of its affiliates to borrow up to $45 million.

Capital Royalty will initially provide NanoString with $30 million, of which $20 million will be borrowed up front to retire its existing loans with Oxford Finance and Silicon Valley Bank. Two years ago, NanoString entered into a $13 million senior secured term loan and a $2 million revolving line of credit with those entities.

Another $10 million will be borrowed within six months, and up to $15 million of additional funding will be available to NanoString through May 2015, the Seattle-based company said. The agreement has a six-year term.

Earlier this year, the company launched a follow-on public offering of its common stock that raised about $57 million.

At the JP Morgan Healthcare Conference in January, NanoString CEO Brad Gray said that driving adoption of the firm's recently launched Prosigna Breast Cancer Prognostic Gene Signature Assay would be a main focus of the company. Other priorities include development of a benchtop version of its nCounter Analysis system, as well as multianalyte and protein analysis assays, and efforts to secure reimbursement for the Prosigna test.

"Together with the capital we have raised through recent equity offerings, the agreement with Capital Royalty provides the funding we need to continue to pursue our business plan aggressively," Gray said in a statement. "The optional borrowing amounts provide added flexibility to fund other growth initiatives as opportunities arise."