GE Capital Provides $7 Million Senior Secured Credit Facility to AirXpanders
Credit facility to support completion of AeroForm™ U.S. pivotal trial and pre-commercialization activities
BETHESDA, Md., April 3, 2014-- GE Capital, Healthcare Financial Services today announced that it has provided a $7 million senior secured multi-draw term loan credit facility to AirXpanders Inc., of which $3.5 million has been funded. AirXpanders is a Palo Alto, CA-based company that’s developing an alternative technology for women who require tissue expansion for breast reconstruction following a mastectomy. GE Capital is acting as administrative agent and sole lender for the credit facility.
AirXpanders’ AeroForm is an injection-free, patient-controlled tissue expansion system under investigation in the United States. The credit facility provides additional flexibility for AirXpanders’ product development needs. Specifically, it will be used primarily to fund the completion of the U.S. clinical trial and implement semi-automation into the AeroForm manufacturing process to increase throughput as the company seeks to file for 510(k) clearance in the U.S. Outside the U.S., the company will initiate a limited market release in Australia, following Australian Therapeutic Goods Administration (TGA) approval in November 2013, in addition to conducting a key opinion leader assessment in Europe.
“We thank GE Capital for supporting the company as we work towards our goal of offering women who undergo a mastectomy a new, more convenient, needle-free option to expand tissue during breast reconstruction surgery,” said Scott Dodson, AirXpanders’ president and chief executive officer. “As we conclude our U.S. trial and await regulatory approval, we are confident that our device will prove to be a significant advancement in breast reconstruction allowing patients greater control, convenience and a faster method of recovering their shape than the current technology provides.”
“We’re pleased to provide financing to AirXpanders, given their novel approach to tissue expansion for those who seek breast reconstruction,” said Neil Bonnano, segment leader, GE Capital, Healthcare Financial Services, Life Sciences. “We’re excited to support such a promising company through its development phase.”
AirXpanders Inc. (www.airxpanders.com) is a tissue-expansion company focused on the area of breast cancer reconstruction. By employing a revolutionary patient-controlled expander, activated by a wireless remote control, the often painful process of recovering one’s feminine shape after cancer can potentially be eased with this needle-free technology that is easy to use and may enable the patient to proceed to a permanent implant much faster than the current standard-of-care. At this time, AirXpanders’ products are not cleared or approved for sale in the United States. AirXpanders is backed by Vivo Ventures, GBS Venture Partners, Prolog Ventures, Heron Capital and Shalon Ventures.
About GE Capital, Healthcare Financial Services
With in-depth industry knowledge and expertise, GE Capital, Healthcare Financial Services has provided more than $65 billion in financing over ten years to companies in 45 healthcare sectors including senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical devices. Our team of professionals creates business and financial solutions tailored to meet the individual needs of our customers. For more information, visit gecapital.com/healthcare.
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GE Capital, Healthcare Financial Services
Maria C. Moreno, 301-664-9859
GE Capital, Americas
Lisa Tibbitts, 203-956-4582
Lazar Partners Ltd. (for AirXpanders)
Erich Sandoval, 917-497-2867
Scott Dodson, 650-390-9008
Venture Capital Database