BG Medicine (BGMD) Enters $15M Secured Loan Facility
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BG Medicine, Inc. (Nasdaq: BGMD), has entered into a $15.0 million secured loan facility with GE Capital, Healthcare Financial Services and Comerica Bank. An initial term loan in the aggregate principal amount of $10 million was funded to the company on February 10, 2012. Subject to BG Medicine's successful achievement of certain revenue milestones and other customary conditions, the company may draw an additional $5 million term loan on or before February 10, 2013.
The initial term loan accrues interest at a rate of 8% plus the higher of (a) the 3-month LIBOR (London Bank Inter-Bank Offer Rate) rate or (b) 1.25% per annum, and has a term of 42 months. Additionally, no principal repayment is due for the first twelve months of the term. In connection with funding of the $10 million initial term loan, BG Medicine issued warrants to purchase 36,657 shares of its common stock with an exercise price of $6.82 per share. If BG Medicine draws the additional $5 million term loan, it will be obligated to issue additional warrants to the lenders, consistent with the warrant formula applicable to the initial term loan.
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The initial term loan accrues interest at a rate of 8% plus the higher of (a) the 3-month LIBOR (London Bank Inter-Bank Offer Rate) rate or (b) 1.25% per annum, and has a term of 42 months. Additionally, no principal repayment is due for the first twelve months of the term. In connection with funding of the $10 million initial term loan, BG Medicine issued warrants to purchase 36,657 shares of its common stock with an exercise price of $6.82 per share. If BG Medicine draws the additional $5 million term loan, it will be obligated to issue additional warrants to the lenders, consistent with the warrant formula applicable to the initial term loan.
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