Oxford Finance Leads $30 Million Term Loan to Peregrine
Peregrine Pharmaceuticals announced that it has secured a $30 million term loan from Oxford Finance, which was the lead lender, MidCap Financial, and Silicon Valley Bank. Under the loan facility, the company received initial funding of $15 million and has an option to receive an additional $15 million.
Pursuant to the loan facility, Peregrine said it will issue to the lenders six-year warrants to purchase shares of the company’s common stock equal to 4.50% of the amount funded at a price per share equal to the lower of the ten-day average share price prior to the applicable funding date or the price per share on the day prior to such funding date. In connection with the initial funding, the company issued warrants to purchase an aggregate of 273,280 shares of common stock at an exercise price of $2.47.
The interest rate for borrowings under the loan facility will be fixed upon drawdown at a rate per annum equal to the greater of (i) 7.95% or (ii) the sum of (a) 7.5% and (b) the three month LIBOR rate. The loan is secured by a first priority security interest in all of the company’s assets, other than its intellectual property and its rights under license agreements granting it rights to intellectual property.
Peregrine Pharmaceuticals is a biopharmaceutical company with a portfolio of innovative monoclonal antibodies in clinical trials for the treatment of cancer and serious viral infections.
To read the Peregrine Pharmaceuticals news release, click here.