Cardiome Pharma Corp. announced today the closing of a senior, secured term loan facility of up to $22 million to be made available to the company by MidCap Financial, LLC in two tranches with an interest rate of Libor plus 8%.
Cardiome currently intends to use the proceeds of the first tranche of $12 million for working capital and general corporate purposes, including the expansion of its sales and marketing efforts for BRINAVESS® and AGGRASTAT® in Europe and other parts of the world, and for clinical development and regulatory costs of vernakalant (IV) and vernakalant (oral). The second tranche of up to $10 million is available to support a product or company acquisition. The loan carries a term of 48 months and is secured by substantially all of the assets of the company.
Cardiome Pharma Corp. is a specialty pharmaceutical company dedicated to the development and commercialization of cardiovascular therapies that will improve the quality of life and health of patients suffering from heart disease. Cardiome has two marketed, in-hospital, cardiology products, BRINAVESSTM (vernakalant IV), approved in Europe and other territories for the rapid conversion of recent onset atrial fibrillation to sinus rhythm in adults, and AGGRASTATTM (tirofiban HCl) a reversible GP IIb/IIIa inhibitor indicated for use in Acute Coronary Syndrome patients.
MidCap Financial is a commercial finance company focused on middle market lending, with emphasis on the broad national healthcare industry. MidCap specializes in $5 million to $200 million loans. The company is headquartered in Bethesda, Maryland, with offices in Chicago and Los Angeles, and focuses in four areas: Asset-Based working capital loans collateralized by third-party accounts receivable and other assets; Leveraged loans to companies backed by private equity sponsors;Life Sciences loans to VC-backed and public pharmaceutical, biotech, and medical device companies; and Real Estate loans to skilled nursing facilities, senior housing properties, and medical office buildings.