BioDelivery Sciences International (BDSI) closed a senior credit facility with affiliates of CRG, a healthcare-focused investment firm, to retire its existing credit facility and provide additional working capital for the company.

The new credit facility consists of $45 million to be drawn at closing and the ability to access additional funding of up to an aggregate of $30 million in two tranches for a total of $75 million based on the achievement of certain revenue and market capitalization milestones through September 30, 2018. The term of the loan is six years with the first three years being interest only.

The upfront proceeds, following payment of the existing credit facility, will be used for general corporate purposes and working capital. With its initial draw of the CRG loan, together with funds on hand, BDSI believes that under its current operating plan, it will have sufficient capital into the second half of 2018.

“We are pleased to have the support of such a well-respected firm like CRG and the confidence they have shown in our business strategy and in the market opportunities that BELBUCA and BUNAVAIL represent,” said Dr. Mark A. Sirgo, president and CEO of BDSI. “This financing, along with our significantly decreased burn-rate as a result of our newly added BELBUCA revenue, strengthens BDSI’s balance sheet and extends our cash runway significantly.”

Cantor Fitzgerald acted as the exclusive financial advisor to BDSI in this transaction.

CRG is a healthcare-focused investment firm with more than $3.0 billion of assets under management across more than 45 portfolio companies.