Exelixis Further Reduces Indebtedness by Repaying Silicon Valley Bank Term Loan
March 29 2017 - 4:50PM
Business Wire
- Plans for Early Repayment of Deerfield
Notes –
Exelixis, Inc. (Nasdaq:EXEL) today announced that it has repaid
all amounts outstanding under its term loan with Silicon Valley
Bank initiated in 2010 and which was due for repayment on May 31,
2017. The $80.1 million payment included $80.0 million in principal
and approximately $60,000 in interest outstanding.
Exelixis also plans to eliminate another source of indebtedness
later this year by retiring the Deerfield Notes, a series of
Convertible Secured Notes issued to entities associated with
Deerfield Management Company, L.P. due July 1, 2018. As was stated
during the company’s 2016 year-end financial results conference
call on February 27, 2017, Exelixis has designated the Deerfield
Notes a Current Liability given its ability and intent to retire
them in the July 2017 timeframe, one year ahead of their maturity
date. As of December 31, 2016, the carrying balance on the
Deerfield Notes was $109.1 million with the total of $124.9 million
due at maturity. Retiring the Deerfield Notes one year ahead of
their maturity date will provide the company a savings of
approximately $12 million in interest expense, net of the
termination fee.
With the early retirement of both the Silicon Valley Bank
indebtedness and the Deerfield Notes this year, Exelixis will have
substantially de-levered its balance sheet.
About Exelixis
Exelixis, Inc. (Nasdaq: EXEL) is a biopharmaceutical company
committed to the discovery, development and commercialization of
new medicines to improve care and outcomes for people with cancer.
Since its founding in 1994, three products discovered at Exelixis
have progressed through clinical development, received regulatory
approval, and entered the marketplace. Two are derived from
cabozantinib, an inhibitor of multiple tyrosine kinases including
MET, AXL and VEGF receptors: CABOMETYX™ tablets approved for
previously treated advanced kidney cancer and COMETRIQ® capsules
approved for progressive, metastatic medullary thyroid cancer. The
third product, COTELLIC®, is a formulation of cobimetinib, a
selective inhibitor of MEK, is marketed under a collaboration with
Genentech (a member of the Roche Group), and is approved as part of
a combination regimen to treat advanced melanoma. Both cabozantinib
and cobimetinib have shown potential in a variety of forms of
cancer and are the subjects of broad clinical development programs.
For more information on Exelixis, please visit www.exelixis.com or
follow @ExelixisInc on Twitter.
Forward-Looking Statements
This press release contains forward-looking statements,
including, without limitation, statements related to: Exelixis’
plans to retire its financial obligation under the Deerfield Notes
in the July 2017 timeframe and related savings expectations;
Exelixis' commitment to the discovery, development and
commercialization of new medicines to improve care and outcomes for
people with cancer; the clinical potential of cabozantinib and
cobimetinib in a variety of forms of cancer; and the continued
development of cabozantinib and cobimetinib. Words such as “plans,”
“will,” “committed,” potential,” or other similar expressions
identify forward-looking statements, but the absence of these words
does not necessarily mean that a statement is not forward-looking.
In addition, any statements that refer to expectations, projections
or other characterizations of future events or circumstances are
forward-looking statements. These forward-looking statements are
based upon Exelixis' current plans, assumptions, beliefs,
expectations, estimates and projections. Forward-looking statements
involve risks and uncertainties. Actual results and the timing of
events could differ materially from those anticipated in the
forward-looking statements as a result of these risks and
uncertainties, which include, without limitation: the sufficiency
of Exelixis’ cash resources; Exelixis' ability to conduct clinical
trials of cabozantinib sufficient to achieve a positive completion;
risks related to the potential failure of cabozantinib and
cobimetinib to demonstrate safety and efficacy in clinical testing;
risks and uncertainties related to regulatory review and approval
processes; the degree of market acceptance of CABOMETYX and
COMETRIQ; Exelixis' dependence on its relationship with its
cabozantinib collaboration partners, including, the level of their
investment in the resources necessary to successfully commercialize
cabozantinib in the territories where it is approved; Exelixis'
dependence on its relationship with Genentech/Roche with
respect to cobimetinib and Exelixis' ability to maintain its rights
under the collaboration; Exelixis' dependence on third-party
vendors; Exelixis' ability to protect the company's intellectual
property rights; market competition; changes in economic and
business conditions, and other factors discussed under the caption
“Risk Factors” in Exelixis' annual report on Form 10-K filed with
the Securities and Exchange Commission (SEC) on February
27, 2017, and in Exelixis' future filings with the SEC. The
forward-looking statements made in this press release speak only as
of the date of this press release. Exelixis expressly
disclaims any duty, obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements
contained herein to reflect any change in Exelixis' expectations
with regard thereto or any change in events, conditions or
circumstances on which any such statements are based.
Exelixis, the Exelixis logo, COMETRIQ and
COTELLIC are registered U.S. trademarks, and CABOMETYX is a U.S.
trademark.
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version on businesswire.com: http://www.businesswire.com/news/home/20170329006192/en/
Exelixis, Inc.Susan Hubbard, 650-837-8194EVP, Public Affairs
& Investor Relationsshubbard@exelixis.comorFor Exelixis, Inc.Hal
Mackins, 415-994-0040hal@torchcomllc.com
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