SWK Funding Provides Term Loan to Response Genetics
Response Genetics, a company focused on the development and sale of molecular diagnostic tests for cancer, and SWK Funding, a wholly-owned subsidiary of SWK Holdings Corporation, as the agent, entered into a credit agreement pursuant to which a group of lenders will provide a term loan in the principal amount up to $12 million.
SWK served as the agent, under the credit agreement and the company was advised in the transaction by Armentum Partners. Response Genetics drew the first tranche of $8.5 million at the closing of the new credit facility and a second tranche is conditional upon the company’s request and the achievement of a revenue milestone. The loan matures on July 29, 2020 and accrues interest at an annual rate of 12.5% plus the LIBOR rate with the LIBOR Rate being subject to a minimum floor of 1.0%. In connection with the closing of the first tranche of the loan, the company issued SWK a warrant to purchase an aggregate of up to 681,090 shares of common stock at an exercise price of $0.936 per share which is a 20% premium to the company’s stock price on July 29, 2014.