Cerus Corporation announced the closing of a new debt facility with MidCap Financial that provides access to up to $110 million in financing. The new facility includes a five-year term loan and an asset-backed revolving loan designed to enhance the company’s financial flexibility and support future growth initiatives.
The refinancing is expected to reduce Cerus’ annual cash interest expense by up to $3.5 million through lower borrowing costs and an approximately $30 million reduction in its outstanding term loan balance. Initial proceeds from the financing, combined with cash on hand, were used to retire the company’s existing $65 million term loan facility with MidCap Financial.
The new term loan includes an initial $35 million tranche funded at closing, with up to an additional $30 million available in $5 million increments over the life of the facility. Amortization of the term loan has been deferred for 48 months, followed by 12 months of straight-line amortization. Cerus also has the option to prepay the facility in $5 million increments at any time.
In addition, Cerus entered into a new five-year revolving loan agreement of up to $45 million. The revolving facility offers improved terms, increased borrowing capacity, and greater flexibility to support the anticipated expansion of the company’s global commercial business.
Cerus said the refinancing strengthens its financial position by extending debt maturities, lowering its cost of capital, and providing additional resources to support long-term strategic priorities and sustainable growth.
Based in Concord, California, Cerus is focused on safeguarding the global blood supply through its INTERCEPT Blood System technologies, which are used by blood centers and hospitals to help reduce pathogens in blood components.
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“This refinancing marks another important milestone in strengthening our financial foundation. The flexibility and increased borrowing capacity, extended maturities, and lower cost of capital provide us with greater financial optionality to support sustainable growth, improve our bottom line and execute our long-term strategic priorities.”
Kevin Green, Chief Financial Officer, Cerus Corporation
