SWK Holdings, a life science focused specialty finance company, announced it closed a credit facility of up to $30 million from a fund affiliated with Carlson Capital. The credit facility has a four-year term and provides financing against all of SWK’s assets.
The credit facility provides for an initial $15 million to be available at closing and is expandable to $30 million upon SWK’s completion of a $10 million equity raise. Interest under the credit facility accrues at Libor + 6.5%.
Carlson was granted a senior secured pledge on all of the company’s assets and the credit facility contains customary covenants. In conjunction with the credit facility, Carlson received a seven-year warrant for one million shares of SWK common stock, with an exercise price of $1.39 per share.
“We are very pleased to announce the Carlson credit facility. Carlson has been a great partner and shareholder, supporting the company’s execution of the specialty finance and asset management business we embarked upon last year. Their work in executing the facility is another example of that support,” said Brett Pope, chief executive officer of SWK.
Winston Black, SWK managing director, said, “The credit facility marks a significant step in our progress towards building out our life science portfolio. We now have additional capacity to further our goal of providing creative capital solutions to smaller companies that have limited, and often highly dilutive, capital alternatives.”