Hercules Provides $8.5 Million Term Loan to NuPathe
NuPathe Inc., a specialty pharmaceutical company focused on the development and commercialization of branded therapeutics for diseases of the central nervous system, announced that it has entered into a $8.5 million term loan agreement with Hercules Technology Growth Capital.
“This new loan with Hercules provides us with better control over our cash flow and capital resources,” said Keith A. Goldan, vice president and chief financial officer of NuPathe. “In addition to paying off our existing loan, this new facility allows us to continue to focus on our key objectives of obtaining FDA approval for Zecuity, securing commercial partners, and conducting additional pre-launch activities for our new migraine treatment.”
The term loan provides for interest-only payments for the first twelve months, has no requirement for restricted cash balances, and has a total maturity period of 42 months. The loan bears a per annum interest rate of the greater of 9.85% or the prime rate minus 3.25%. The loan is secured by a first position lien on all of NuPathe’s assets, excluding intellectual property, which is subject to a negative pledge prohibiting NuPathe from granting liens on such assets to any third parties.
Approximately $8 million of the loan proceeds will be used to pay off NuPathe’s existing term loan facility with the remaining proceeds to be used for general working capital purposes. Hercules received $42,500 in cash, 50,000 shares of common stock and a five-year warrant to purchase 106,631 shares of NuPathe common stock at an exercise price equal to $2.79 per share.