Santarus obtains $20 million revolving line of credit

By Lisa Kerner

Charlotte, N.C., Aug. 1 - Santarus, Inc. said it has obtained a $20 million three-year revolving line of credit from Comerica Bank for working capital and general corporate purposes.

The company will make interest-only payments on any draws from the line of credit, at either the variable rate of interest, per annum (Comerica's Prime rate) or the Libor rate plus 2.25%.

Interest payments on advances are due on the first calendar day of each month during the loan agreement term.

Any principal drawn during the term of the loan facility is due and payable at the maturity date, which is July 28, 2009.

The line of credit is secured by the company's assets, excluding intellectual property, and includes financial covenants requiring Santarus to maintain certain levels of cash and investments and remaining months' liquidity.

Santarus is required to maintain a balance of cash with Comerica of not less than $4 million.

"With this commercial line of credit, we expect to have greater financial flexibility in managing our cash balances to support our business objectives, including the continued growth of the Zegerid brand," senior vice president and chief financial officer Debra P. Crawford said in a company news release.

San Diego-based Santarus is a specialty pharmaceutical focused on therapies for gastrointestinal diseases and disorders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.