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The ABL Advisor Deal Tables
SELECTED TRANSACTION DETAILS
Athyrium Capital Management Closes $100MM Credit Facility for Recro Pharma
Tuesday, November 21, 2017
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Lenders/Participants
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Athyrium Capital Management [Lender]
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Structure
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Credit Facility
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Amount
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$100.000
Million
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Borrower(s)
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Recro Pharma, Inc.
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Description
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Proceeds from the facility will be used to refinance Recro’s outstanding debt, pay a $45 million milestone due to intravenous (IV) meloxicam licensor Alkermes plc upon the approval of IV meloxicam 30mg by the U.S. Food and Drug Administration (FDA), and help fund working capital. Piper Jaffray acted as exclusive financial advisor and sole placement agent to Recro on this transaction. This financing is in the form of a five-year, interest only term loan bearing interest at a rate of LIBOR plus 9.75% per annum. This structure allows for more flexibility at a significantly lower cost of capital relative to the Company’s prior debt. The funds are structured in three tranches, with $60 million available immediately upon closing of the transaction. An additional $20 million is available upon the FDA’s approval of IV meloxicam 30mg subject to certain financial conditions. The final $20 million is available after Recro demonstrates early IV meloxicam 30mg commercial traction. In connection with the credit facility, Recro issued and granted to Athyrium warrants to purchase 348,664 shares of Recro common stock at an exercise price of $8.60 per share.
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Industry
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Pharmaceuticals
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| Related Tags |
Athyrium Capital Management
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ABL Advisor
Deal Tables
2024
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