GE Capital HFS Closes Navidea Term Debt Financing
Navidea Biopharmaceuticals announced that it has closed a $25 million term debt financing transaction led by GE Capital, Healthcare Financial Services. The loan 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.
“We are proud to provide Navidea with this critical capital as they advance their pipeline candidates toward regulatory approval and commercialization in these important medical areas,” said Anthony Storino, senior managing director of life sciences finance at GE Capital, Healthcare Financial Services. “We support customers’ strategies with deep knowledge of the healthcare industry, and financing expertise to support business objectives, including advancements in vital healthcare products.”
The funding of $25 million, which closed on June 25, 2013, is in the form of a senior secured term loan facility. In addition, 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 (Montaur); 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 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 the aggregate.
Dublin, OH-based Navidea Biopharmaceuticals is focused on the development and commercialization of precision diagnostic and radiopharmaceutical agents.