Pharmaceutical Product Development obtains $80 million facility for new headquarters

By Lisa Kerner

Erie, Pa., March 3 - Pharmaceutical Product Development, Inc. and two of its subsidiaries, River Ventures, LLC and PPD Development, LP, entered into an $80 million unsecured construction loan facility with Bank of America, NA, according to an 8-K report filed with the Securities and Exchange Commission.

The company made an initial draw of $21.5 million to repay outstanding borrowings under its $50 million revolving line of credit.

The new facility matures on Feb. 27, 2008 and carries an interest rate equal to 60 basis points over the one-month Libor, according to the filing.

As part of the loan agreement, the company must maintain at least $50 million in cash, cash equivalents and short-term investments while the loan is outstanding.

The new corporate headquarters building and related parking facility will be built in Wilmington, N.C., where the company is currently based.

Pharmaceutical Product Development is a contract research organization that provides discovery and development services, market development expertise and compound partnering programs.

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