Offer also includes warrant for 300,000 shares, exercisable at $13.93
By Devika Patel
Knoxville, Tenn., May 29 - Retrophin, Inc. said it arranged a $40 million senior secured term loan facility with Athyrium Capital Management. It also plans a $40 million private placement of senior convertible notes. Barclays and Nomura were the agents for the convertibles. Barclays was the agent for the loan.
The term loan is due in 2018 and accrues interest at Libor plus 100 basis points with a floor of Libor plus 10 basis points.
Athyrium also will receive warrants for 300,000 shares, which are each exercisable at $13.93 for five years. The strike price is identical to the May 28 closing share price.
The 4.5% convertibles are due on May 30, 2019 and are convertible into common stock at an initial conversion rate of 57.43 shares per $1,000 of notes, which is equal to an initial conversion price of about $17.41 per share, a 24.98% premium to the May 28 closing share price.
"We were pleased to obtain non-dilutive financing," founder and chief executive officer Martin Shkreli said in a press release.
"After a thorough process, we chose to partner with Athyrium, not only because they offered the best terms, but because we were most comfortable with their integrity and professionalism. With this financing, we are well-positioned to move forward on several exciting potential acquisitions identified by our business development team."
The biopharmaceutical company is based in New York.
| Issuer: | Retrophin, Inc.
|
| Issue: | Senior secured term loan facility, senior convertible notes
|
| Amount: | $80 million
|
| Pricing date: | May 29
|
| Stock symbol: | Nasdaq: RTRX
|
| Stock price: | $13.93 at close May 28
|
| Market capitalization: | $314.56 million
|
|
|
| Loan
|
| Amount: | $40 million
|
| Maturity: | 2018
|
| Coupon: | Libor plus 100 bps
|
| Call: | Yes
|
| Warrants: | For 300,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $13.93
|
| Agent: | Barclays
|
| Investor: | Athyrium Capital Management
|
|
|
| Convertible note
|
| Amount: | $40 million
|
| Maturity: | May 30, 2019
|
| Coupon: | 4.5%
|
| Conversion price: | $17.41 (approximate)
|
| Conversion rate: | 57.43 shares per $1,000 of notes
|
| Conversion premium: | 24.98%
|
| Warrants: | No
|
| Agents: | Barclays and Nomura
|
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