According to an 8-K filing, Solar Capital provided $65 million in term loans for GenMark Diagnostics, a provider of multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics and reduce the total cost-of-care.
The loans will be available in two tranches:
- A $50 million term loan, which was funded on the effective date of the credit agreement
- An additional $15 million term loan, funded at the company’s option, but no later than December 31, 2019, the availability of which is subject to the company achieving a designated threshold amount of product revenues on a trailing six-month basis
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On the effective date, GenMark used approximately $38.8 million of the tranche 1 loan proceeds to repay all outstanding principal, interest, related fees and other obligations under the company’s existing loan and security agreement with Solar Senior Capital, with the remaining borrowings to be used to satisfy the company’s future working capital needs and general business requirements.
The term loans will accrue interest at a floating per annum rate in effect from time-to-time equal to the greater of 2.51% or the one-month LIBOR rate then in effect as of the applicable payment date, plus 5.90% per annum. The company is only required to make interest payments on amounts borrowed pursuant to the term loans from the applicable funding date until February 28, 2021.
Subject to certain conditions, GenMark may voluntarily prepay the term loan in full, but not in part, at any time prior to the maturity date, provided that any such prepayment would be subject to a graduated prepayment premium based on the amount prepaid and the date of prepayment.
