Halozyme Therapeutics (HALO) Announces Debt Refinancing Arrangement; Boosts YE16 Cash Balance Outlook

Halozyme Therapeutics, Inc. (Nasdaq: HALO) announced that it has entered into an agreement with Oxford Finance LLC and Silicon Valley Bank to refinance its existing senior secured loan facility.

Under the new financing agreement, Halozyme borrowed $55 million at a fixed rate of 8.25% and used the proceeds to refinance its existing long-term debt. The new facility provides for interest-only payments for the first 18 months followed by consecutive monthly payments of principal and interest until maturity on January 1, 2021. The agreement will result in a $22 million per-year increase to the company's expected cash balance at the end of 2016 and 2017. The new loan facility also provides Halozyme the option to borrow an additional $15 million during the second quarter of 2017 at a fixed interest rate equal to then-current prime rate plus 4.75%.

As a result of the refinancing, Halozyme raised its previously announced cash balance guidance, now expecting a year-end cash balance of $170 million to $190 million, an increase from the prior range of $150 million to $170 million.

As of March 31, Halozyme had approximately $239 million in cash and cash equivalents.

Additional details of the credit facility are outlined in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 8.

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