Strongbridge Biopharma arranges $50 million six-year loan; Hudson seals $22.5 million loan

By Devika Patel

Knoxville, Tenn., July 17 – The week opened with just two private placements announced: Trevose, Pa., biopharmaceutical company Strongbridge Biopharma plc arranged a $50 million six-year senior credit facility with CRG LP, and Vancouver, B.C.-based mining company Hudson Resources Inc. concluded a two-part $22.5 million seven-year floating-rate loan with Cordiant Capital Inc.

The six-year Strongbridge credit facility consists of $40 million borrowed initially with access to an additional $10 million by June 30, 2018 once the company achieves certain milestones.

Interest accrues at 12.5% per annum, of which 4% may be paid in kind. The loan may be repaid.

The company has issued seven-year warrants to the investor for 394,289 ordinary shares, each exercisable at $7.37.

Concurrent with the first tranche, CRG also purchased $3 million of the company’s ordinary shares at $6.98 per share.

Proceeds will be used to retire Strongbridge’s existing debt facility and for general corporate purposes and working capital.

Hudson’s loan with Cordiant settled in two tranches, both due in seven years.

A $13 million senior tranche bears interest at Libor plus 650 basis points.

A $9.5 million subordinated tranche bears interest at Libor plus 950 bps.

Cordiant also received 450,000 warrants, each exercisable at C$0.55 for three years.

European Investment Bank is expected to assume the senior finance contract from Cordiant in the near future.

© 2015 Prospect News.
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