GPB Capital Enters into $21 Million Debt Investment in CardioFocus
- On June 22, 2018
Proceeds from Senior Secured Convertible Note Will Go toward Rollout of Innovative HeartLight® Endoscopic Balloon Ablation System to Treat Atrial Fibrillation
New York – June 22, 2018 – GPB Capital has completed a debt investment in CardioFocus® Inc., which develops and manufactures products for the treatment of irregular heartbeats and other cardiac disorders. Proceeds from the investment will help CardioFocus commercially launch its next-generation HeartLight® Endoscopic Balloon Ablation System for the treatment of atrial fibrillation (AF), the most common heart arrhythmia.
The investment in CardioFocus aligns with GPB Capital’s ongoing strategy of providing senior secured loans to help small and midsize businesses reach the next phase of growth and profitability. To learn more about GPB Capital’s debt investment strategy, please visit: https://gpb-cap.com/our-strategies/debt-strategies/.
“We are pleased to partner with CardioFocus to roll out its next innovation, which has the potential to revolutionize the treatment of atrial fibrillation,” said Evan Myrianthopoulos, Managing Partner with GPB Capital responsible for the firm’s Debt Strategies. “By offering the support CardioFocus needs to successfully bring the HeartLight Endoscopic Balloon system to market, we seek to achieve both a return on investment and a global impact—one that could improve the quality of life for atrial fibrillation patients on multiple continents.”
Marlborough, Mass.-based CardioFocus, founded in 1999, recently received US FDA approval for its next-generation HeartLight Endoscopic Balloon. It had previously received CE Mark approval for the HeartLight Endoscopic Balloon, allowing for commercialization in Europe, and also holds PMDA approval, enabling commercialization in Japan.
“The HeartLight Endoscopic Balloon’s new launch reflects our ongoing dedication to bringing new levels of precision and control to the treatment of atrial fibrillation,” said Paul LaViolette, Executive Chairman of CardioFocus. “The investment from GPB Capital will help us make this groundbreaking cardiac ablation system available as an advanced tool that physicians can use to improve heart health in their communities.”
GPB Capital’s debt investment in CardioFocus consists of a $21 million senior secured convertible note scheduled to mature in April 2021. The note’s proceeds will be distributed in two tranches, including an initial deployment of approximately $13 million. The remaining $8 million is on track to be released during or before the first quarter of 2019, subject to CardioFocus achieving set revenue targets.
About GPB Capital Holdings, LLC
GPB Capital is a New York-based alternative asset management firm focused on acquiring or investing in income producing companies and assets. GPB Capital seeks to provide its portfolio companies with the strategic planning, managerial insight, and capital needed to enable strong businesses to achieve the next level of growth and profitability. GPB Capital has raised more than $1.5 billion in capital. For more information, please visit www.gpbcap.com.
About CardioFocus Inc.
Headquartered in Marlborough, Mass., CardioFocus Inc. is a medical device innovator and manufacturer dedicated to advancing ablation treatment for cardiac disorders such as Atrial Fibrillation (AF). The company’s first product, the HeartLight® Endoscopic Ablation System is a revolutionary catheter ablation technology designed for the treatment of AF, the most common heart arrhythmia. The device received CE Mark in 2009, U.S. FDA approval in April 2016 and Japan PMDA approval in July 2017. More than 5,000 patients with AF have been successfully treated with the system. For more information, visit www.cardiofocus.com.