Nuvo uses $66 million of Deerfield loans for portfolio purchase

By Sarah Lizee

Olympia, Wash., Dec. 31 – Nuvo Pharmaceuticals Inc. said it used $66 million of loans from Deerfield Management Co. LP to help finance its previously announced acquisition of a portfolio of more than 20 revenue-generating products from Aralez Pharmaceuticals Inc.

The loans consist of a $60 million 3.5% six-year amortizing loan and a $6 million 12.5% 18-month bridge loan, according to a press release.

The total purchase price paid by Nuvo to Aralez at closing was $110 million, less a $4.4 million deposit previously paid and subject to some working capital and debt adjustments.

The Deerfield financing also included $52.5 million of 3.5% six-year convertible notes and about 25,555,556 million common share purchase warrants.

Nuvo Pharmaceuticals is a health care company with a portfolio of commercial products and pharmaceutical manufacturing capabilities based in Mississauga, Ont.

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