A leading investment firm focused on structured financings of commercialized biopharmaceutical products and medical technologies.
Solta Medical, Inc. (NASDAQ: SLTM), a global leader in the medical aesthetics market, today announced that it has closed a structured debt financing with Capital Royalty Partners L.P. The transaction provides Solta with $40 million for working capital. Under the terms of the agreement, Capital Royalty will provide $40 million, $27 million of which will be used immediately to retire the existing loan with Silicon Valley Bank. The term debt has interest only payments for the first four years and covenants which are more tailored to the company's growth plans as compared to more traditional bank debt.
Several consistent features make Structured Debt a compelling option when compared to traditional sources of capital; these include: (1) access to long-term capital on flexible, customizable terms, (2) a competitive cost of capital with limited equity dilution, and (3) straightforward transaction execution processes. The purpose of this white paper is to introduce Structured Debt, provide an overview of the increasingly important role it plays in capital markets, identify companies and situations for which it is best suited, and discuss its key terms, variations, and advantages from the perspective of a growth-stage company.