A Medical Device Daily

ev3 (Plymouth, Minnesota), a company developing endovascular devices, yesterday reported that it has established a $37.5 million credit facility with SVB Silicon Valley Bank's Minneapolis office. The company also reaffirmed previous financial guidance for the second quarter and full year 2006.

The credit facility consists of a two-year, collateral-backed $30 million revolving line of credit and $7.5 million line of equipment financing with a four-year maturity. The borrowing base of the revolving line is a percentage of the company's eligible receivables and inventory.

The company said in a statement that the new facility, along with its existing cash and cash equivalents, provide “ample liquidity and financial flexibility to meet the operating, strategic and corporate development needs of the company for the foreseeable future.”

Reaffirming its previous guidance, ev3 said that it expects net sales in the second quarter and full year 2006 to be in the range of $45 to $49 million and $196 to $208 million, respectively.

The company noted further that it expects 2Q sales to be closer to the high end of its previous guidance range. It also reaffirmed that it expects quarterly operating losses to be reduced during 2006 as compared to its quarterly operating losses for FY05.

ev3 develops endovascular technologies for the minimally-invasive treatment of vascular diseases and disorders.

American Medical Systems Holdings (AMS; Minneapolis) reported completing the sale of $373.75 million aggregate principal amount of its 3-1/4% convertible senior subordinated notes, due July 2036, including $48.75 million aggregate principal amount of notes sold in accordance with the exercise of the underwriters' over-allotment option.

AMS said it will use proceeds of the sale to fund a portion of the merger consideration of its acquisition of Laserscope (San Jose, California) – a deal unveiled in June, valued at $715 million (Medical Device Daily, June 6, 2006) – and for general working capital. If the Laserscope acquisition does not occur, the company said it intends to use the proceeds for working capital and general corporate purposes, including possible acquisitions.

Piper Jaffray & Co. acted as the sole bookrunner for the offering; co-managers were Thomas Weisel Partners and KeyBanc Capital Markets.

AMS is a supplier of medical devices and procedures to cure erectile dysfunction, benign prostatic hyperplasia, incontinence, menorrhagia, prolapse and other pelvic disorders in men and women. The company's products were used to provide about 170,000 patient cures in 56 countries during 2005.

In other financing activity: BioMed Realty Trust (San Diego) reported that it has amended and restated its unsecured revolving credit facility, doubling the size of the facility from $250 million to $500 million.

In addition to increasing the size of the facility, the amendment extends the term to June 27, 2009, provides greater flexibility with respect to covenants and reduces the borrowing rate. BioMed said it may extend the maturity date of the revolving credit facility to June 27, 2010, and may increase the amount of the facility to $700 million upon satisfying certain conditions.

Alan Gold, president and CEO, said the funding provides BioMed with additional borrowing capacity for acquisitions and more flexibility “to operate our business, particularly with respect to developing and redeveloping properties.”

KeyBank National Association served as administrative agent, lead arranger and sole book manager.

BioMed is a real estate investment trust providing real estate to the life science industry, its tenants primarily being biotechnology and pharmaceutical companies, research institutions, government agencies and others in the life sciences.