By Devika Patel
Knoxville, Tenn., Sept. 26 - ISTA Pharmaceuticals, Inc. announced it has secured a $65 million credit facility with long-term shareholders Deerfield Management, Sprout and Sanderling Ventures.
ISTA has drawn $40 million and will be able to draw up to an additional $25 million any time over the next 12 months.
Any amounts drawn accrue interest until maturity at a rate of 6.5% per annum, which is payable on a quarterly basis.
Any funds drawn are repayable in one-third increments in 2011, 2012 and 2013.
The investors will receive warrants for 12.5 million common shares, which are exercisable at $1.41.
ISTA can draw from the remaining $25 million in $5 million increments and will issue 500,000 warrants per $5 million drawn, which will be exercisable at a price which is the higher of the market price of the stock at the time of the draw or $1.41 per share.
RBC Capital Markets is the agent.
ISTA Pharmaceuticals is an ophthalmic pharmaceutical company based in Irvine, Calif.
| Issuer: | ISTA Pharmaceuticals, Inc.
|
| Issue: | Credit facility
|
| Amount: | $65 million
|
| Coupon: | 6.5%
|
| Warrants: | 500,000 warrants per $5 million drawn (15 million warrants)
|
| Warrant strike price: | $1.41
|
| Agent: | RBC Capital Markets
|
| Investors: | Deerfield Management, Sprout and Sanderling Ventures
|
| Settlement date: | Sept. 26 (for $40 million)
|
| Stock symbol: | Nasdaq: ISTA
|
| Stock price: | $1.41 at close Sept. 25
|
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