JPMorgan Chase Bank will assume $45 million of Varian Medical Systems' (NYSE: VAR) approximately $115 million loan commitment to fund the development, construction and initial operations of the Scripps Proton Therapy Center in Mira Mesa.
Under the agreements, Chase purchased $38.1 million of Palo Alto-based Varian's outstanding loans and is obligated to fund up to an additional $6.9 million of the remaining loan commitment for the newly completed 102,000-square-foot Proton Therapy Center.
"We believe this transaction signifies the growing confidence that the financial community has in Varian's ProBeam proton solution, which is now being used for patient treatments at Scripps," said Dow Wilson, CEO of Varian Medical Systems, in a statement. "We anticipate that this will build support for financing other proton therapy centers."
Proton therapy makes it possible to treat certain types of cancer more precisely and with potentially fewer side effects than is possible with conventional radiation therapy. Patient treatments commenced successfully in February at the Scripps Proton Therapy Center, which was developed by Advanced Particle Therapy.