Financing with Citibank is guaranteed by Eastern and includes warrants
By Devika Patel
Knoxville, Tenn., Aug. 28 - Resverlogix Corp. said it arranged a C$25 million loan agreement with Citibank, NA. The loan is secured by an irrevocable C$25 million standby letter of credit arranged by Eastern Capital Ltd.
The loan is due Aug. 24, 2017. It may be prepaid after Aug. 23, 2013. The loan carries a 4.5% coupon in the first year and an interest rate equal to the one-year Libor plus 314 basis points after the first year.
Eastern also received warrants for 1.32 million shares and a 0.03% guarantee fee on the letter of credit. The warrants are each exercisable at C$1.58 until Aug. 27, 2017. The strike price reflects a 0.64% premium to the Aug. 27 closing share price of C$1.57.
Proceeds will be used for research and development activities, general and administrative expenses, increased working capital and other general corporate purposes.
Based in Calgary, Alta., Resverlogix is a biotechnology company focused on therapies for cardiovascular disease.
| Issuer: | Resverlogix Corp.
|
| Issue: | Loan
|
| Amount: | C$25 million
|
| Maturity: | Aug. 24, 2017
|
| Coupon: | 4.5% in the first year, Libor plus 314 bps after the first year
|
| Call: | After Aug. 23, 2013
|
| Warrants: | For 1.32 million shares
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| Warrant expiration: | Aug. 27, 2017
|
| Warrant strike price: | C$1.58
|
| Investor: | Citibank, NA
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| Guarantor: | Eastern Capital Ltd.
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| Settlement date: | Aug. 28
|
| Stock symbol: | Toronto: RVX
|
| Stock price: | C$1.57 at close Aug. 27
|
| Market capitalization: | C$130.61 million
|
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