Cryo-Cell International Closes Cord Blood Bank Buyout

Cryo-Cell International (CCEL) late Friday said it has negotiated a $9 million increase in its bank loan facility to help fund its $14 million cash-and-stock purchase of the Cord Use: Cord Blood Bank announced June 4.

The transaction, which closed earlier Friday, creates the world’s first private cord blood bank and also includes up to $200 million in milestone payments to the blood bank’s prior owners based on Cryo-Cell reaching certain operating benchmarks, although the company Friday said it does not expect it will have to pay out the entire $200 million.

Cryo-Cell paid $10.5 million in cash at closing and also issued 465,426 shares of its common stock to the seller, valuing the shares at $7.44 apiece, a 9.8% discount to Thursday’s closing price for the stocks. It also assumed certain limited liabilities incurred by seller that were unpaid at the closing and the company also assumed some of seller’s contract obligations.