Oxford Finance Provides $20MM Term Loan to DURECT
DURECT Corporation announced that it had entered into a loan and security agreement with Oxford Finance, pursuant to which Oxford agreed to make a term loan to the company in the principal amount of $20 million. The loan has a fixed interest rate of 7.95% per annum with interest only payments for the first 18 months and repayment of all principal and interest by July 1, 2018.
In addition, the company paid a $150,000 facility fee at closing and, at maturity or earlier termination, the company must pay Oxford an additional one-time payment equal to 8% of the initial principal amount of the term loan. The company may use the proceeds of the loan agreement for general working capital and to fund its business requirements.
Cupertino, CA-based DURECT Corporation is pioneering the development and commercialization of pharmaceutical systems for the treatment of chronic debilitating diseases and enabling biotechnology-based pharmaceutical products.