SUNNYVALE, Calif., June 15, 2017 /PRNewswire/ -- Accuray
Incorporated (NASDAQ: ARAY) announced today it has closed a new
$52 million senior secured revolving
loan facility with MidCap Financial Trust. The net proceeds of the
facility, in addition to cash on hand were used to retire all debt
held by Cerberus Business Finance, LLC.
The new facility bears interest at 90-day LIBOR (subject to a
1.00% floor) plus 450 basis points with a final maturity date of
June 2021. This spread is up to 300
basis points lower than the debt being retired and as a result
Accuray expects interest costs to be reduced by approximately
$2.0 million annually beginning in
fiscal 2018. The Company can draw upon a further $33.0 million of additional revolving facility,
subject to the terms of the agreement.
"The new agreement lowers our annual interest costs and reduces
total debt outstanding by over $10.0
million," said Kevin Waters,
Chief Financial Officer. "In regard to our remaining outstanding
convertible debt, our objective remains to evaluate all financing
sources that would allow us to either refinance our existing
convertible debt or provide the cash necessary to settle the debt
with cash at maturity and our new loan facility with MidCap
Financial Trust gives us the flexibility to achieve that
objective."
The Company had $98.4 million of
cash, cash equivalents, restricted cash and investments at
March 31, 2017.
About Accuray
Accuray Incorporated (NASDAQ: ARAY) is a radiation oncology company
that develops, manufactures, and sells precise, innovative tumor
treatment solutions that set the standard of care with the aim of
helping patients live longer, better lives. The company's
leading-edge technologies deliver the full range of radiation
therapy and radiosurgery treatments. For more information, please
visit www.accuray.com.
Safe Harbor Statement
Statements made in this press release that are not statements of
historical fact are forward-looking statements and are subject to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements in this press
release relate, but are not limited, to Accuray's company
trajectory, Accuray's ability to achieve its strategic objectives
with respect to its remaining convertible debt, and Accuray's
leadership position in radiation oncology innovation.
Forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from
expectations, including but not limited to the risks detailed from
time to time under the heading "Risk Factors" in the company's
report on Form 10-K, filed on August 24,
2016, the company's reports on Form 10-Q, filed on
November 1, 2016, February 3, 2017, and May
5, 2017, and as updated periodically with the company's
other filings with the SEC.
Forward-looking statements speak only as of the date the
statements are made and are based on information available to
Accuray at the time those statements are made and/or management's
good faith belief as of that time with respect to future events.
The company assumes no obligation to update forward-looking
statements to reflect actual performance or results, changes in
assumptions or changes in other factors affecting forward-looking
information, except to the extent required by applicable securities
laws. Accordingly, investors should not put undue reliance on any
forward-looking statements.
Investor Contact:
Doug Sherk
Investor Relations, EVC Group
+1 (415) 652-9100
dsherk@evcgroup.com
Media Contacts:
Beth Kaplan
Accuray
+1 (408) 789-4426
bkaplan@accuray.com
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SOURCE Accuray Incorporated