Comerica Bank Amends Santarus Revolving Line of Credit
Santarus, Inc. announced that it has increased its revolving line of credit with Comerica Bank from $25 million to $35 million and extended the maturity from July 11, 2013 to February 13, 2015. In addition, Santarus has improved the interest terms on outstanding indebtedness under the credit facility with the option of paying either Comerica’s prime rate (representing a reduction of 0.5%) or the LIBOR rate plus 2.25% (representing a reduction of 0.75%). Santarus makes interest-only payments on any draws from the line of credit and any principal outstanding is due and payable at the maturity date. Santarus has drawn $10 million on the line of credit to date.
“The revolving line of credit provides an attractive source of non-dilutive capital, and the increased size and improved terms give us flexibility in furthering our corporate objectives,” said Debra P. Crawford, senior vice president and chief financial officer of Santarus. “We are pleased to extend our commercial banking relationship with Comerica, and we look forward to Comerica’s continued support as we focus on growing our business.”
Santarus originally established the line of credit with Comerica in July 2006 to have capital available for working capital needs and other corporate purposes. The credit facility is secured by Santarus’ assets, excluding intellectual property, and contains affirmative and negative covenants, including certain financial covenants.
Santarus, Inc. is a specialty biopharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by physician specialists.