Company gets $15 million loan and $5 million accounts receivable line
By Devika Patel
Knoxville, Tenn., Aug. 9 - NeurogesX, Inc. negotiated a $20 million financing agreement with Hercules Technology Growth Capital, Inc. on Aug. 5, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The financing includes both a $5 million accounts receivable line and a $15 million term loan.
The $15 million term loan is required to be repaid over the course of 42 months, which includes a one-year interest-only period at the beginning of the term. Interest on the loan has a minimum rate of 9.5%, which can increase based on fluctuations in the Prime rate.
The $5 million accounts receivable line is a revolving line that is available until Dec. 31, 2012 and then is renewable by Hercules each year. The accounts receivable line bears interest at a minimum interest rate of 6.75%, which can also increase based on fluctuations in the Prime rate.
The company may prepay both the term loan and the accounts receivable line at any time, with a $600,000 fee when the term loan is repaid.
Hercules also received a warrant for 791,667 shares, which is exercisable at $1.80 for five years. The strike price reflects a 20.35% discount to the Aug. 4 closing share price of $2.26.
Based in San Carlos, Calif., NeurogesX is a specialty pharmaceutical company focused on neuropathic pain.
| Issuer: | NeurogesX, Inc.
|
| Issue: | Term loan, accounts receivable line
|
| Amount: | $20 million
|
| Warrants: | For 791,667 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.80
|
| Investor: | Hercules Technology Growth Capital, Inc.
|
| Fees: | $150,000
|
| Settlement date: | Aug. 5
|
| Stock symbol: | Nasdaq: NGSX
|
| Stock price: | $2.35 at close Aug. 5
|
| Market capitalization: | $38.61 million
|
|
|
| Loan
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| Amount: | $15 million
|
| Maturity: | 42 months
|
| Coupon: | Floor of 9.5%, based on Prime
|
| Call: | With a $600,000 fee
|
|
|
| Accounts receivable line
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| Amount: | $5 million
|
| Maturity: | Dec. 31, 2012
|
| Coupon: | Floor of 6.75%, based on Prime
|
| Call: | Yes
|
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