BioDelivery Sciences Strengthens Financial Position with Debt Refinancing
May 28 2019 - 4:10PM
BioDelivery Sciences International, Inc. (Nasdaq: BDSI) (“BDSI”)
today announced that it has successfully completed the refinancing
of its existing debt agreement with a new facility from BioPharma
Credit plc (“BPCR”). The new facility consists of a $60.0 million
term loan and will generate an estimated $1.5 million in annual
interest cost savings compared to the previous debt facility.
“We are pleased to announce this debt
re-financing with BPCR, an investment fund managed by Pharmakon
Advisors, LP, a leading financing partner in the healthcare space,”
commented Terry Coelho, Chief Financial Officer for BDSI.
“Following our recent equity raise of $50 million, this new and
lower cost debt facility further strengthens our balance sheet and
provides BDSI with added flexibility to continue to drive the
transformation of BDSI into a successful commercial-stage specialty
pharmaceutical company. Additionally, this new facility is cash
flow accretive, extends our debt maturity and lowers our overall
cost of capital.”
The new facility carries a 72-month term with
interest only payments for the first 36 months. The interest rate
on the term loan is 7.5% plus the LIBOR rate, which at the closing
resulted in a rate of 10.0%. An additional feature of the new
facility is the flexibility to draw an additional $20.0 million
within the first 12 months of the agreement. BDSI will have a
total debt balance of $60 million after closing.
Proceeds from this financing, along with
available cash on hand, were used to repay and retire the company’s
existing term loan with CRG Servicing LLC which had an outstanding
balance of $61.8 million, an interest rate of 12.5% as well as a
back-end facility fee, and a maturity date of December 2022.
ABOUT BIODELIVERY SCIENCES
INTERNATIONAL, INC.
BioDelivery Sciences International,
Inc. (NASDAQ: BDSI) is a commercial-stage specialty
pharmaceutical company dedicated to patients living with chronic
conditions. BDSI has built a portfolio of products that includes
utilizing its novel and proprietary BioErodible MucoAdhesive
(BEMA®) technology to develop and commercialize, either on its own
or in partnership with third parties, new applications of proven
therapies aimed at addressing important unmet medical needs. BDSI's
marketed products and those in development address serious and
debilitating conditions such as chronic pain, breakthrough cancer
pain, opioid dependence and opioid induced constipation.
CAUTIONARY NOTE ON
FORWARD-LOOKING STATEMENTS
This press release and any statements of
employees, representatives, and partners of BDSI related thereto
contain, or may contain, among other things, certain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve significant risks and uncertainties. Such
statements may include, without limitation, statements with respect
to the BDSI’s plans, objectives, projections, expectations and
intentions and other statements identified by words such as
“projects,” “may,” “will,” “could,” “would,” “should,” “believes,”
“expects,” “anticipates,” “estimates,” “intends,” “plans,”
“potential” or similar expressions. These statements are based upon
the current beliefs and expectations of the BDSI’s management and
are subject to significant risks and uncertainties, including those
detailed in the BDSI’s filings with the Securities and Exchange
Commission. Actual results (including, without limitation, the
estimated annual interest cost savings) may differ materially from
those set forth or implied in the forward-looking statements. These
forward-looking statements involve certain risks and uncertainties
that are subject to change based on various factors (many of which
are beyond the BDSI’s control) including those set forth in our
2018 annual report on Form 10-K filed with the US Securities and
Exchange Commission and subsequent filings. BDSI undertakes no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future presentations or
otherwise, except as required by applicable law.
CONTACT: Mary Coleman Vice
President, Investor Relations BioDelivery Sciences International,
Inc. 919-582-9050 mcoleman@bdsi.com
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