Lifeline: NxStage

NxStage Announces Credit Facility Amendment --Company Completes First Step to Restructure Repayment Schedule

LAWRENCE, Mass., March 16, 2009 /PRNewswire-

NxStage Medical, Inc. today announced that it has entered into an amendment of its November 21, 2007 credit and security agreement with a group of lenders led by GE Business Financial Services Inc. The amendment postpones principal payments under the term loan for three months, from April through June 2009, decreases the minimum net revenue covenants and adds certain minimum liquidity and minimum adjusted consolidated EBITDA targets.

Robert Brown, Chief Financial Officer of NxStage Medical. "This amendment provides the Company with additional flexibility to remain in compliance with its terms and covenants, and the revised facility terms reflect the impact of the current economic conditions."

In connection with this amendment, the Company paid a $0.5 million amendment fee and agreed to increase the interest rate on the facility's term loan from 10.42% to 11.12% per annum. Interest on any borrowings under the revolving credit facility now includes a LIBOR floor of 4% plus 6.5%. Previously, the interest rate for the revolver had no floor on LIBOR. Additional security was also provided by expanding the collateral base to include all intellectual property held by NxStage.