Offering includes warrant for 10,258 preferreds, exercisable at $61.42
By Devika Patel
Knoxville, Tenn., June 2 - Radius Health, Inc. arranged a $30 million term loan with Solar Capital Ltd. and Oxford Finance LLC on May 30, according to an 8-K filed Monday with the Securities and Exchange Commission. The company has already drawn down $21 million.
The four-year loan accrues interest at Libor plus 985 basis points and may be prepaid.
The lenders also received warrants for 10,258 series B-2 convertible preferred shares. The warrant is exercisable at $61.42 for five years.
The company also will pay a $300,000 fee.
The company used about $9.3 million of the proceeds to repay its loan with General Electric Capital Corp.
The biopharmaceutical company is based in Cambridge, Mass.
| Issuer: | Radius Health, Inc.
|
| Issue: | Term loan
|
| Amount: | $30 million
|
| Maturity: | June 1, 2018
|
| Coupon: | Libor plus 985 bps
|
| Call: | Yes
|
| Warrants: | For 10,258 series B-2 convertible preferred shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $61.42
|
| Investors: | Solar Capital Ltd. and Oxford Finance LLC
|
| Fees: | $300,000
|
| Settlement date: | May 30 (for $21 million)
|
| Stock symbol: | OTCBB: RDUFF
|
| Stock price: | $0.11 at close May 29
|
| Market capitalization: | $9.54 million
|
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