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CRG Inks $75MM Working Capital Facility with BDSI

February 24, 2017, 07:25 AM
Filed Under: Pharmaceuticals

BioDelivery Sciences International, Inc. announced that it has entered into a senior credit facility with affiliates of CRG LP, a healthcare-focused investment firm, to retire its existing credit facility and provide additional working capital for the company.

The new credit facility consists of $45 million to be drawn at closing and the ability to access additional funding of up to an aggregate of $30 million in two tranches for a total of $75 million based on the achievement of certain revenue and market capitalization milestones through September 30, 2018. The term of the loan is six years with the first three years being interest only.

The upfront proceeds, following payment of the existing credit facility, will be used for general corporate purposes and working capital. With its initial draw of the CRG loan, together with funds on hand, BDSI believes that under its current operating plan, it will have sufficient capital into the second half of 2018.

“We are pleased to have the support of such a well-respected firm like CRG and the confidence they have shown in our business strategy and in the market opportunities that BELBUCA® and BUNAVAIL® represent,” said Dr. Mark A. Sirgo, President and Chief Executive Officer of BDSI. “This financing, along with our significantly decreased burn-rate as a result of our newly added BELBUCA revenue, strengthens BDSI’s balance sheet and extends our cash runway significantly. The proceeds will support our commercialization efforts particularly behind BELBUCA and allow us to focus on business options involving our commercial portfolio that could potentially bring enhanced value to our shareholders.”

“BDSI is in a unique position, offering important solutions to address two major and growing healthcare problems – addiction and chronic pain,” said Luke Düster, Managing Director at CRG. “CRG looks forward to working with BDSI as they continue to build their business with products such as BELBUCA and BUNAVAIL, which offer distinct advantages over other treatments, as well as their product pipeline. Following our standard, extensive due diligence, we believe BDSI’s portfolio has strong potential and that access to this credit facility will help build value.”

Cantor Fitzgerald & Co. acted as the exclusive financial advisor to BDSI in this transaction.

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