Two-tranche deal with Oxford and Silicon Valley also includes warrants
By Devika Patel
Knoxville, Tenn., Jan. 20 – Minerva Neurosciences, Inc. arranged a $15 million loan with Oxford Finance LLC and Silicon Valley Bank on Jan. 16, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company drew down $10 million at settlement and may settle one additional tranche of up to $5 million.
The first-tranche loan accrues interest at 7.05%. The second-tranche loan of $5 million will accrue interest at a fixed rate calculated at the greater of 7.05% or the Prime rate as quoted in the Wall Street Journal three business days preceding settlement of the second tranche, plus 380 basis points. Both tranches mature on Aug. 1, 2018. The loans may be called at prices ranging from 101 to 103.
Oxford and Silicon Valley also received warrants for 40,790 shares. The warrants are exercisable at $5.516 for 10 years. The strike price is a 20.17% premium to the Jan. 15 closing price of $4.59.
The company paid a facility fee of $75,000.
The clinical-stage biopharmaceutical company is based in Cambridge, Mass.
| Issuer: | Minerva Neurosciences, Inc.
|
| Issue: | Loan
|
| Amount: | $15 million
|
| Maturity: | Aug. 1, 2018
|
| Coupon: | 7.05% (for $10 million), the greater of 7.05% or the Prime rate as quoted in Wall Street Journal three business days preceding settlement of the second tranche, plus 380 basis points (for $5 million)
|
| Call: | At 101 to 103
|
| Warrants: | For 40,790 shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $5.516
|
| Investor: | Oxford Finance LLC and Silicon Valley Bank
|
| Fees: | $75,000
|
| Settlement date: | Jan. 16 (for $10 million)
|
| Stock symbol: | Nasdaq: NERV
|
| Stock price: | $4.59 at close Jan. 15
|
| Market capitalization: | $85.74 million
|
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