Investors also get five-year warrants for 528,375 shares, $450,000 fee
By Devika Patel
Knoxville, Tenn., June 12 - Anacor Pharmaceuticals, Inc. arranged a $45 million loan agreement with Hercules Technology Growth Capital, Inc. and Hercules Technology III, LP on June 7, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The company settled $30 million on June 7.
The loan carries a coupon equal to the greater of 11.65% and the sum of the Prime rate minus 525 basis points plus 1,165 basis points, with a ceiling of 14.9%. It matures on July 1, 2017.
The lenders also received a facility fee of $450,000 and warrants for 528,375 common shares, which are exercisable at $5.11 until June 7, 2018. The strike price is identical to the June 6 closing share price.
The second tranche of $10 million is expected to settle on Dec. 5, and the third tranche of $5 million is expected to settle on Dec. 15.
The company used about $22.6 million of the proceeds to repay a loan with Oxford Finance LLC and Horizon Technology Finance Corp. and expects to use the remainder of the proceeds for filing its New Drug Application for tavaborole, conducting additional clinical studies of AN2728 and general working capital.
The pharmaceutical company is based in Palo Alto, Calif.
| Issuer: | Anacor Pharmaceuticals, Inc.
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| Issue: | Loan
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| Amount: | $45 million
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| Maturity: | July 1, 2017
|
| Coupon: | The greater of 11.65% and the sum of the Prime rate minus 525 bps plus 1,165bps; ceiling of 14.9%
|
| Warrants: | For 528,375 shares
|
| Warrant expiration: | June 7, 2018
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| Warrant strike price: | $5.11
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| Investor: | Hercules Technology Growth Capital, Inc. and Hercules Technology III, LP
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| Fees: | $450,000
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| Settlement date: | June 7 (for $30 million), Dec. 5 (for $10 million), Dec. 15 (for $5 million)
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| Stock symbol: | Nasdaq: ANAC
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| Stock price: | $5.11 at close June 6
|
| Market capitalization: | $227.98 million
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