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CareDx Secures $20M Loan with East West Bank

NEW YORK (GenomeWeb) – CareDx today announced it has entered into a secured credit facility for a total of $20 million with East West Bank.

Under the terms of the loan agreement, the $20 million is available in two tranches: $16 million at closing and an additional $4 million if certain financial conditions are maintained during the initial six month period. The credit facility comes with no additional fees, matures in December 2018, and carries an initial annual interest rate of 5.25 percent that floats with the lender's prime rate.

CareDx did not disclose its plans for the loan. The company's primary product is AlloMap, a blood-based gene expression test that allows clinicians to monitor heart transplant recipients for acute cellular rejection.

"Our new credit facility is larger than our previous loan, carries minimal financial covenants and provides greater flexibility for us in the future," CareDx President and CEO Peter Maag said in a statement, adding that the loan would add $6 million to $10 million to the company's balance sheet.

CareDx has also issued East West Bank a warrant to purchase 34,483 shares of the firm's common stock with an exercise price of $6.96 and a term of five years. 

The credit facility replaces a prior credit facility from Oxford Finance and Silicon Valley Bank. CareDx went public in July 2014.

Armentum Partners served as advisor to CareDx for this financing.