Antares Pharma amended its credit facility with Hercules Capital to increase the available debt capital by $25 million for a term loan of up to $50 million.

The company originally borrowed $25 million from Hercules under the existing loan agreement in June 2017.

“Today’s announcement of the amendment to the existing agreement with Hercules further enhances our cash position and provides us with additional non-dilutive capital to support current growth in both our proprietary and alliance business as well as to continue to invest in our strategic plan for what we believe will be sustained long-term growth,” stated Fred M. Powell, EVP, CFO of Antares Pharma.

The first tranche of $25 million was funded upon execution of the original loan agreement in June 2017. A new $15 million loan was funded upon execution of the amendment. Under the terms of the amended agreement, Antares has the option to draw up to an additional $10 million at the Company’s option commencing on January 1, 2020 and continuing through September 15, 2020. The term of the loan is three years and payments under the loan are interest only for the initial 24-month period, followed by equal monthly payments of principal and interest thereafter until the end of the three-year term.

The interest-only period may be extended to 36 months contingent upon Antares achieving a certain milestone. The term loan maturity date may also be extended contingent upon satisfaction of certain loan extension milestones. The interest rate on the loan is equal to the lesser of the Prime Rate plus 4.5%, and 9.5%. There are no equity components to the amended agreement.

Antares Pharma is a combination drug device company focused on the development and commercialization of self-administered parenteral pharmaceutical products using advanced drug delivery auto injector technology.