Pharmaceutical company Alimera Sciences amended and extended its $45 million term loan agreement with investment affiliates managed by SLR Capital Partners to extend the interest-only period for at least two years and extend the final maturity date to April 30, 2028. The interest-only period may be extended by up to three years if certain financial targets are achieved.
“We deeply appreciate SLR’s ongoing support, as well as the interest of Velan Capital and Caligan Partners in working with us to help more patients see better longer with fewer injections,” Rick Eiswirth, president and CEO of Alimera Sciences, said. “We are thrilled about the potential availability of up to $30 million from these partners, which will aid us in identifying and obtaining complementary assets to deliver to our customers across the globe.”
The term loan amendment provides for an additional tranche of $2.5 million funded at closing to pay final interest and prepayment fees associated with the existing facility, increasing the total term loan to $47.5 million at closing. The amendment extends the maturity date to April 30, 2028, with monthly interest-only continuing to May 1, 2025, when principal amortization will begin. The interest-only period may be extended an additional 12 months if Alimera achieves $7.5 million in adjusted EBITDA, as defined in the amended agreement, for any trailing 12-month period ending on or before March 31, 2025. Interest on outstanding borrowing under the term loan is payable at the greater of one-month SOFR or 4.6% plus 5.15% per annum. As of the closing of the amendment, the term loan’s new interest rate is 9.75%, down from the previous rate of 12.32%. The amended facility also provides for an additional tranche of up to $15 million at the discretion of the lenders, which the company would intend to use for potential in-licenses or product acquisitions.