Cardiome Pharma has amended its term loan agreement with CRG-managed funds which was originally entered into on June 13, 2016. The amended agreement provides Cardiome with up to $50 million of available borrowing capacity.

William Hunter, M.D., president and CEO of Cardiome, commented, “We are delighted to expand our agreement with CRG. We began our relationship under the premise that CRG would offer a platform to scale with Cardiome’s growing business, and we are pleased that CRG is increasing its investment alongside our significant progress. Cardiome is at an important inflection point. We are in late stage negotiations for multiple compelling products, each with strategic benefits for our company, and it is important for Cardiome to have financial arrangements in place for when capital is needed. We expect to deploy this additional non-dilutive capital toward opportunities that will grow our business significantly.”

Under the terms of the original term loan agreement, CRG provided $20 million to the company for general working capital purposes and to retire existing debt at the time. Under the terms of the amended agreement, CRG will provide an additional $10 million to the company on the effective date of the amended agreement. Two additional tranches of $10 million each are available to the company subject to certain conditions. The loan matures on March 31, 2022.

The amended agreement bears interest at 13% per annum. Interest payments may be split, at the company’s option, between 9% per annum in cash interest and 4% per annum in paid in-kind interest in the form of additional term loans until March 31, 2020. In consideration for entering into the amended agreement, CRG will receive 700,000 transferrable warrants with a strike price of $4.00. The warrants are subject to a four-month hold period and are exercisable until May 10, 2022.

Piper Jaffray Companies advised Cardiome on the transaction.