Cytokinetics obtains $5 million LoC, extends collaboration with Portola Pharm

By Angela McDaniels

Seattle, March 22 - Cytokinetics Inc. obtained a line of credit of up to $5 million from General Electric Capital Corp. on March 16, according to an 8-K report filed with the Securities and Exchange Commission on Tuesday.

Proceeds from the line of credit, which will expire on Dec. 31, 2006, will be used to purchase equipment, including laboratory and scientific equipment, laboratory and office furniture, computers and networking equipment.

Borrowings under the line of credit carry a 7.2% interest rate and must be repaid monthly for 60 months, according to the filing.

Under the master security agreement between the company and GE, funds borrowed by the company are secured by the property and equipment purchased using the borrowed funds and other collateral agreed to by the company. Cytokinetics must also provide a security deposit of 50% of the loan amount.

Separately, the company extended its collaboration and facilities agreement with Portola Pharmaceuticals Inc. until Dec. 31.

Under the agreement, Portola provides Cytokinetics with research and related services and access to a portion of Portola's facilities and personnel to support those services. Charles J. Homcy, president and chief executive officer of Portola, is a member of Cytokinetics' board of directors and a consultant to the company.

Cytokinetics is a biopharmaceutical company based in South San Francisco that develops small molecule drugs that target the cytoskeleton.

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