MidCap, SVB Increase Furiex Pharmaceuticals Loan By $30 Million
Furiex Pharmaceuticals, Inc. announced it has restructured its loan and security agreement with MidCap Financial and Silicon Valley Bank to add $30 million in capital to the existing $10 million loan.
On August 18, 2011, Furiex entered into the agreement for $10 million with a fixed interest rate of 10.25% per annum. Interest accrued monthly and was payable in arrears on the first day of the following month. The $10 million principal balance was due August 1, 2015, with principal payments beginning on August 1, 2012, payable on a ratable monthly basis on the first day of each month until maturity.
The amended agreement provides for a loan totaling $40 million with a fixed interest rate at closing of 10.00% per annum, subject to adjustment in certain events. Interest will accrue daily and will be payable in arrears on the first day of the following month. The total principal balance is due August 1, 2016, with principal payments beginning on August 1, 2013, payable on a ratable monthly basis on the first day of each month until maturity. Furiex intends to use the additional capital to support Phase III clinical trial costs associated with the continued development of MuDelta.
“As we progress the Phase III development of MuDelta, this transaction provides us with additional financial flexibility to help us reach our development goals,” said Marshall Woodworth, chief financial officer of Furiex. “We are pleased to have successfully closed on this source of capital and to continue our relationship with MidCap Financial LLC and Silicon Valley Bank.”
Furiex Pharmaceuticals is a drug development collaboration company that uses innovative clinical development design to accelerate and increase value of drug development programs by advancing them through the drug discovery and development process in a cost-efficient manner.
MidCap Financial is a commercial finance company focused on middle-market lending across the healthcare sector.
Silicon Valley Bank is a bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses.
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