Navidea Biopharmaceuticals has closed a $25 million debt financing transaction led by GE Capital, Healthcare Financial Services.
The debt financing funds will be used to support Lymphoseek commercialization activities, advance the clinical development of the Company’s pipeline, repay certain of the Company’s existing outstanding indebtedness, and for general corporate purposes.
The debt financing of $25 million, which closed on June 25, 2013, is in the form of a senior secured term loan facility.
In addition to the debt financing, in connection with this transaction, Navidea announces certain changes were made to the Company’s line of credit currently in place with Platinum-Montaur Life Sciences; specifically, $4.8 million of the $8 million in currently outstanding indebtedness to Montaur was forgiven as consideration for the exercise of warrants for Series B preferred shares of the Company, in lieu of the 7.7 million shares of common stock for which the warrants were originally exercisable.
The Series B preferred shares have rights to convert back into the same number of common shares as per the terms of the debt financing
The borrowing capacity of the Montaur credit facility was also reset to $30 million available immediately under existing terms with an additional $15 million available on similar terms as agreed to by the parties, thereby providing access to the Company under the Montaur facility of over $53 million in funding, and as much as $78 million, under the two facilities in aggregate.
Report: Lymphoma Partnering
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