Array BioPharma obtains $10 million term loan, $5 million equipment advances, $2 million revolver

By Jennifer Chiou

New York, July 5 - Array BioPharma Inc. entered into a $10 million term loan agreement with Comerica Bank, according to an 8-K filing with the Securities and Exchange Commission.

The term loan, which currently bears interest at 4.5%, is due June 28, 2010.

In addition, the company agreed to terms of $5 million in equipment advances also due June 28, 2010 and available periodically through Dec. 28, 2006 to purchase equipment, capitalized software and tenant improvements.

The Boulder, Colo.-based company also obtained a $2 million revolving line of credit to support future issuance of standby letters of credit until June 28, 2008.

The outstanding balances on each bear interest monthly at company-elected rates that include prime minus 175 basis points, Libor plus 100 basis points or the bank's cost of funds plus 125 basis points.

If Array keeps less than $8 million at the bank during any interest rate period, it must pay an additional 50 basis points.

Array develops and commercializes oral drugs for cancer and inflammatory diseases.

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