SMALL BONE INNOVATIONS, INC. SECURES $43 MILLION CREDIT FACILITY
NEW YORK, NY : December 7, 2011 –Small Bone Innovations, Inc. (SBi), a leading, privately held orthopedics company focused exclusively on technologies and treatments for the small bones & joints, has closed on a $43 million credit facility to help further accelerate sales of its flagship STAR™ total ankle replacement technology, upper and lower limb portfolio and to refinance existing indebtedness.
The senior, secured credit facility was provided by New Health Capital Partners Fund I LP and affiliated private equity funds managed by New Health Capital Partners, LLC (together "New Health Capital Partners" or "NHCP"). New Health is focused on investing throughout the capital structure of life sciences companies, including senior secured loans, royalty monetizations, control equity investments and other structured financings.
The new credit facility has enabled SBi to repay its previous credit facility and provide working capital to continue to drive growth in the STAR ankle and its upper and lower limb product portfolio. The facility will also support a more aggressive buildup of SBi's direct sales organization in the United States.
Anthony G. Viscogliosi, SBi's Chairman & CEO, said: "We are highly encouraged by SBi's positive sales and business performance this year. We have been successful in achieving continued growth in revenues while substantially reducing operating expenses."
Mr. Viscogliosi added: "The STAR ankle continues to gain significant traction in North America. We believe that the STAR ankle continues to be the #1 total ankle replacement system in the world. This new credit facility represents both a vote of confidence in our business model and underlines the potential of the small bone and joint market as the fastest growing sector in the orthopedic devices market. NHCP's industry expertise and ability to create highly customized financing solutions was an ideal match for a technology intensive, fast growing company like SBi. NHCP quickly delivered a transaction that makes a great deal sense for our business."
Richard Baxter, Founder and Managing Director of New Health, said: "We have been monitoring SBi's performance closely since its inception and have been impressed by what the company has achieved thus far, especially in light of the extremely weak global economy and corresponding slowdown in global orthopedic device revenue growth. We are excited to partner with SBi and are confident that the STAR ankle will realize its full potential by changing the standard of care from fusion to total ankle replacement."
About Small Bone Innovations, Inc.