Pharming Group completed a new $100 million finance agreement with Orbimed Advisors used to redeem the amortizing convertible bonds due 2017/2018, and to refinance the company’s senior debt facility with Silicon Valley Bank and Kreos Capital, together with the associated prepayment fees and the legal and other costs of the transaction.

The loan, initially structured as a bridge facility, will be replaced within 60 days by a full loan agreement with a maturity date of June 2021 under similar terms and conditions.

The new four-year $100 million senior secured debt facility will refinance debt on terms that are more favorable, redeem a total of €35.9 million ($39.1 million) of amortizing convertible bonds and refinance $40 million of senior debt. The other terms of the new facility were not disclosed.

The overall interest rate is approximately 12%, reducing to 11% if the company achieves net sales in the U.S. of $100 million during the term of the loan.

The loan has been used to redeem the current amortizing convertible bonds due 2017/2018, in an amount of €44.9 million ($49.68 million) including early repayment fees and to refinance the existing senior debt facility in an amount of €43.3 million ($47.9 million) including early repayment fees.

Pharming is a specialty pharmaceutical company developing products for the safe, effective treatment of rare diseases and unmet medical needs.