ReShape Medical, Inc., a San Clemente, CA-based company that specializes in a dual-intragastric balloon for weight loss, closed a $12m senior secured term loan.
Backers included Oxford Finance LLC, a specialty finance firm that provides senior debt to life sciences and healthcare services companies, and Silicon Valley Bank.
The company intends to use the proceeds for marketing purposes and for product enhancements.
Led by Rick Thompson, president and CEO, ReShape Medical is a medical device company focused on the development and commercialization of its dual intragastric balloon for weight loss. ReShape™ Integrated Dual Balloon System, which is used as an aid in the treatment of obese patients. The device has been available in the European Union since December 2011 and and is currently being evaluated in U.S. FDA clinical study.
The company is also preparing for an equity financing round.
FinSMEs
22/04/2015
Press Release
Oxford Finance and Silicon Valley Bank Close $12 Million Senior Credit Facility with ReShape Medical®
ALEXANDRIA, Va., April 21, 2015 /PRNewswire/ — Oxford Finance LLC (“Oxford”), a specialty finance firm that provides senior debt to life sciences and healthcare services companies, and Silicon Valley Bank (“SVB”) today announced the closing of a $12 million senior secured term loan agreement with ReShape Medical, Inc. ReShape Medical® specializes in a dual-intragastric balloon for weight loss, ReShape™ Integrated Dual Balloon System, which is used as an aid in the treatment of obese patients. Proceeds of the loan will be used for marketing purposes and for future product enhancements.
“Oxford is pleased to provide capital to ReShape Medical for the commercialization of its product,” said Christopher A. Herr, managing director for Oxford Finance. “The company is anticipating FDA approval of the ReShape Dual Balloon, which would be among the first non-surgical weight loss devices available in the United States.”
“Increasing our clients’ probability of success is our primary objective in working with companies like ReShape Medical that are bringing important medical advancements to the healthcare market,” said Brett Maver, director for Silicon Valley Bank in San Diego, California. “We are happy to help the ReShape Medical team move its business forward quickly as the company grows.”
“We are very pleased to be working with the SVB and Oxford teams,” said Rick Thompson, ReShape Medical president and CEO. “This financing enhances our ability to move forward while awaiting the FDA decision and preparing for an equity financing round to fund commercialization of our product.”
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior secured loans to public and private life sciences and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $2 billion in loans, with lines of credit ranging from $500 thousand to $75 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in California, Massachusetts and North Carolina. For more information visit www.oxfordfinance.com.
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Forbes named SVB one of America’s best banks (2015) and one of America’s best-managed companies (2014). Learn more at svb.com. Silicon Valley Bank is the California bank subsidiary and commercial banking operation of SVB Financial Group (Nasdaq: SIVB), and a member of the FDIC. Silicon Valley Bank and SVB Financial Group are members of the Federal Reserve System.
About ReShape Medical
ReShape Medical is a medical device company focused on the development and commercialization of its dual intragastric balloon for weight loss. Driven by a passion to address the worldwide obesity epidemic, the company has developed a non-surgical alternative for obese patients seeking treatment. Additional company information can be found at www.reshapemedical.com. The ReShape device has been available in the European Union since December 2011.