By Devika Patel
Knoxville, Tenn., Dec. 29 – Strongbridge Biopharma plc arranged a $40 million senior credit facility with Oxford Finance LLC and Horizon Technology Finance with an equity component, according to a press release.
The credit facility consists of $20 million borrowed initially with access to two additional tranches of $10 million each. The additional tranches will become available to the company once it achieves certain milestones.
The loan is due in four years and bears interest at a rate equal to the greater of the sum of 822 basis points plus 53 bps or 822 bps plus the one-month Libor.
The company has issued 10-year warrants to the investors for 428,571 ordinary shares, each exercisable at $2.45.
The biopharmaceutical company is based in Trevose, Pa.
| Issuer: | Strongbridge Biopharma plc
|
| Issue: | Senior credit agreement
|
| Amount: | $40 million
|
| Maturity: | Four years
|
| Coupon: | The greater of the sum of 822 basis points plus 53 bps, or 822 bps plus the one-month Libor
|
| Warrants: | For 428,571 shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $2.45
|
| Investor: | Oxford Finance LLC and Horizon Technology Finance
|
| Announcement date: | Dec. 29
|
| Distribution: | Private placement
|
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