Alimera Sciences Refinances Debt With New $40 Million Debt Facility From Solar Capital
January 08 2018 - 7:30AM
Alimera Sciences, Inc. (NASDAQ:ALIM) (“Alimera”), a pharmaceutical
company that specializes in the commercialization and development
of prescription ophthalmic pharmaceuticals, today announced that it
has entered into a $40 million term loan agreement with Solar
Capital Ltd. (NASDAQ:SLRC) (“Solar Capital”).
Alimera will use the proceeds of this funding to
pay off an existing $35 million term loan along with related fees
and expenses, and to provide additional working capital for general
corporate purposes.
“Working with Solar Capital provides us with a
long-term partner and a stable debt facility over the next few
years,” said Dan Myers, Alimera’s chief executive officer.
“Further, eliminating the restrictive liquidity covenants in our
existing loan will unlock more working capital to invest in our
business.”
“Solar Capital is pleased to provide this
financing to support Alimera’s continued commercial growth,” said
Anthony Storino, Head of Solar Capital’s Life Science Lending
platform. “We look forward to building a longstanding
relationship with the Alimera team in the years to come.”
Interest on outstanding borrowing under the term
loan is payable at one-month LIBOR plus 7.65% per annum. The
term loan’s current interest rate is 9.2%. The term loan, which
matures on July 1, 2022, provides for interest only payments for
the first 30 months. If Alimera meets certain revenue
thresholds, it can extend the interest only period to 36 months
followed by 18 months of principal and interest.
In connection with the term loan, Alimera paid
Solar Capital a $400,000 fee at closing, and Alimera is obligated
to pay a $1.8 million fee upon repayment of the term loan in full
($2.0 million if the interest only period has been extended), and
additional fees not to exceed $2.0 million in total on a change in
control or the achievement of certain sales milestones. No
warrants were issued in connection with the term loan. For
more details on the terms of the refinancing, please see Alimera’s
Current Report on Form 8-K, which Alimera expects to file with the
SEC promptly after issuing this press release.
About Alimera Sciences,
Inc.
www.alimerasciences.com
Alimera, founded in June 2003, is a
pharmaceutical company that specializes in the commercialization
and development of prescription ophthalmic pharmaceuticals.
Alimera is presently focused on diseases affecting the back
of the eye, or retina, because these diseases are not well treated
with current therapies and will affect millions of people in our
aging populations. Alimera’s commitment to retina specialists
and their patients is manifest in Alimera’s product and development
portfolio designed to treat early- and late-stage diseases.
For more information, please
visit www.alimerasciences.com.
About Solar Capital Ltd.
Solar Capital Ltd. is a closed-end investment
company that has elected to be treated as a business development
company under the Investment Company Act of 1940. A specialty
finance company with expertise in several niche markets, Solar
Capital primarily invests in leveraged, U.S. middle market
companies in the form of senior secured cash flow and asset-based
investments. Solar Capital’s life science lending business
provides financing solutions for bio-pharma, medical device,
healthcare IT and healthcare services companies, both
venture-backed private and public, and from pre-revenue clinical to
early commercial stage. For more information, please
visit www.solarcapltd.com.
Forward-Looking Statements
This press release contains “forward-looking
statements,” within the meaning of the Private Securities
Litigation Reform Act of 1995, regarding, among other things, the
fueling of company growth and investments in its business from
working capital freed up by the elimination of liquidity covenants.
Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties,
including factors that could delay, divert or change any of them,
and could cause actual results to differ materially from those
projected in its forward-looking statements. Meaningful
factors that could cause actual results to differ include whether
and to what effect Alimera successfully uses the additional working
capital for the stated purposes, as well as the other factors
discussed in the “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” sections
of Alimera’s Annual Report on Form 10-K for the year
ended December 31, 2016 and Quarterly Report on Form 10-Q for
the quarter ended September 30, 2017, which are on file with
the SEC and available on the SEC’s website at www.sec.gov.
Additional factors may be included in those sections of
Alimera’s Annual Report on Form 10-K for the year ending December
31, 2017 to be filed in the first quarter of 2018 with the SEC.
In addition to the risks described above and in Alimera’s
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings with the SEC, other
unknown or unpredictable factors also could affect Alimera’s
results. There can be no assurance that the actual results or
developments anticipated by Alimera will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, Alimera. Therefore, no
assurance can be given that the outcomes stated in such
forward-looking statements and estimates will be achieved.
All forward-looking statements contained in this
press release are expressly qualified by the cautionary statements
contained or referred to herein. Alimera cautions investors
not to rely too heavily on the forward-looking statements Alimera
makes or that are made on its behalf. These forward-looking
statements speak only as of the date of this press release (unless
another date is indicated). Alimera undertakes no obligation,
and specifically declines any obligation, to publicly update or
revise any such forward-looking statements, whether as a result of
new information, future events or otherwise.
For press
inquiries: Katie Brazel for Alimera Sciences 404-317-8361
kbrazel@bellsouth.net |
For investor
inquiries: CG Capital for Alimera Sciences 877-889-1972
investorrelations@cg.capital |
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