Horizon Pharma (HZNP) Enters $60M Loan Agreement
Tweet
Share
E-mailGet Alerts HZNP Hot Sheet
Up)Join SI Premium – FREE
Horizon Pharma, Inc. (Nasdaq: HZNP) has entered into a loan agreement with a group of lenders to provide $60 million in capital. Horizon used $22.4 million of the loan proceeds to repay the remaining obligations under its loan agreements with Oxford Finance LLC, Silicon Valley Bank and Kreos Capital III (UK) Limited, and expects to use the remainder of the capital to fund the ongoing commercial launch of DUEXIS in the U.S., and to pursue regulatory approval for DUEXIS in Europe and LODOTRA in the U.S.
Under the terms of the loan facility, the outstanding principal accrues interest until maturity in January 2017 at a rate of 17% per annum (12% cash, 5% PIK), payable quarterly unless repaid earlier. Beginning in April 2013, and each quarter thereafter, the lenders may require the company to repay approximately $4.0 million of the loan principal. Horizon may also prepay the loan at any time, at its option, subject to certain prepayment premiums. In connection with the loan facility, the company also issued warrants to the lenders to purchase up to an aggregate of approximately 3.3 million shares of common stock at an exercise price of $0.01 per share.
Stifel Nicolaus Weisel, JMP Securities LLC, and Cowen and Company, LLC served as financial advisors and financing agents on this transaction. Horizon expects to file a Current Report on Form 8-K with the Securities and Exchange Commission that will contain a more detailed disclosure concerning this financing.
Under the terms of the loan facility, the outstanding principal accrues interest until maturity in January 2017 at a rate of 17% per annum (12% cash, 5% PIK), payable quarterly unless repaid earlier. Beginning in April 2013, and each quarter thereafter, the lenders may require the company to repay approximately $4.0 million of the loan principal. Horizon may also prepay the loan at any time, at its option, subject to certain prepayment premiums. In connection with the loan facility, the company also issued warrants to the lenders to purchase up to an aggregate of approximately 3.3 million shares of common stock at an exercise price of $0.01 per share.
Stifel Nicolaus Weisel, JMP Securities LLC, and Cowen and Company, LLC served as financial advisors and financing agents on this transaction. Horizon expects to file a Current Report on Form 8-K with the Securities and Exchange Commission that will contain a more detailed disclosure concerning this financing.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Belite Bio (BLTE) Announces $25 Million Registered Direct Offering
- Rubrik (RBRK) Prices Upsized 23.5M Share IPO at $32/sh
- Western Alliance Bancorporation (WAL) Appoints Greta Guggenheim, Christopher A. Halmy and Mary Chris Jammet to its Board
Create E-mail Alert Related Categories
Corporate NewsRelated Entities
Stifel, JMP Securities, Cowen & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
