Benzinga | Dec 22, 2020 07:02AM EST

Castle Biosciences Announces Early Repayment Of Debt

Recent Equity Financing Contributes to Strong, Debt-Free Balance Sheet

Castle Biosciences, Inc. (NASDAQ:CSTL), a skin cancer diagnostics company providing personalized genomic information to improve cancer treatment decisions, today announced it prepaid in full its outstanding term loan facility to further improve its balance sheet.

"Following our recent successful equity financing, full prepayment of our outstanding debt signifies another step in fortifying our balance sheet," said Derek Maetzold, president and chief executive officer of Castle Biosciences. "We believe our strong financial position allows us to further advance our product pipeline and provide additional support for our currently marketed products and drive continued growth as we move into 2021."

Castle's term loan facility with Oxford Finance, LLC, and Silicon Valley Bank was originally funded on Nov. 30, 2018. On Dec. 21, 2020, the Company paid the lenders approximately $21.6 million, which includes pay-off amounts for principal, interest, fees, reimbursement of expenses and other items. The prepayment will result in a net cash savings to the Company and terminates all commitments and obligations under the loan agreement.