SAN DIEGO, June 8, 2016 /PRNewswire/ -- Halozyme
Therapeutics, Inc. (NASDAQ: HALO), a biotechnology company
developing novel oncology and drug-delivery therapies, today
announced that it has entered into an agreement with Oxford Finance
LLC and Silicon Valley Bank to refinance its existing senior
secured loan facility.
Under the new financing agreement, Halozyme borrowed
$55 million at a fixed rate of 8.25%
and used the proceeds to refinance its existing long-term debt. The
new facility provides for interest-only payments for the first 18
months followed by consecutive monthly payments of principal and
interest until maturity on January 1,
2021. The agreement will result in a $22 million per-year increase to the company's
expected cash balance at the end of 2016 and 2017. The new loan
facility also provides Halozyme the option to borrow an additional
$15 million during the second quarter
of 2017 at a fixed interest rate equal to then-current prime rate
plus 4.75%.
As a result of the refinancing, Halozyme raised its previously
announced cash balance guidance, now expecting a year-end cash
balance of $170 million to $190
million, an increase from the prior range of $150 million to $170 million.
As of March 31, Halozyme had
approximately $239 million in cash
and cash equivalents.
Additional details of the credit facility are outlined in the
Company's Current Report on Form 8-K filed with the Securities and
Exchange Commission on June 8.
About Halozyme
Halozyme Therapeutics is a
biotechnology company focused on developing and commercializing
novel oncology therapies that target the tumor microenvironment.
Halozyme's lead proprietary program, investigational drug PEGPH20,
applies a unique approach to targeting solid tumors, allowing
increased access of co-administered cancer drug therapies to the
tumor in animal models. PEGPH20 is currently in development for
metastatic pancreatic cancer, non-small cell lung cancer, gastric
cancer, metastatic breast cancer and has potential across
additional cancers in combination with different types of cancer
therapies. In addition to its proprietary product portfolio,
Halozyme has established value-driving partnerships with leading
pharmaceutical companies including Roche, Baxalta, Pfizer, Janssen,
AbbVie and Lilly for its ENHANZE™ drug delivery platform. Halozyme
is headquartered in San Diego. For
more information visit www.halozyme.com.
Safe Harbor Statement
In addition to historical
information, the statements set forth above include forward-looking
statements (including, without limitation, statements concerning
the Company's future financing expectations and plans and future
cash balance expectations) that involve risk and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. The forward-looking statements are
typically, but not always, identified through use of the words
"believe," "enable," "may," "will," "could," "intends," "estimate,"
"anticipate," "plan," "predict," "probable," "potential,"
"possible," "should," "continue," and other words of similar
meaning. Actual results could differ materially from the
expectations contained in forward-looking statements as a result of
several factors, including unexpected expenditures and costs,
unexpected fluctuations or changes in revenues, including revenues
from collaborators, unexpected results or delays in development of
product candidates and regulatory review, regulatory approval
requirements, unexpected adverse events and competitive conditions.
These and other factors that may result in differences are
discussed in greater detail in the Company's Annual Report on Form
10-Q filed with the Securities and Exchange Commission on
May 9, 2016.
Contacts:
Jim
Mazzola
858-704-8122
ir@halozyme.com
Chris Burton
858-704-8352
ir@halozyme.com
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SOURCE Halozyme Therapeutics, Inc.