By Devika Patel
Knoxville, Tenn., Aug. 6 - Dyax Corp. settled a $50 million loan with Cowen Healthcare Royalty Partners, LP on Aug. 5, according to an 8-K filed Wednesday with the Securities and Exchange Commission and a company press release.
The loan is secured by the company's phage display licensing and funded research program.
The loan, which matures in August 2016, bears interest at an annual rate of 16%, payable quarterly. Dyax may prepay the loan without penalty, in whole or in part, after Aug. 5, 2011.
Cowen Healthcare also received an eight-year warrant for 250,000 common shares, exercisable at $5.50 until Aug. 5, 2016.
The company used the proceeds from the loan, in part, to repurchase the licensing and funded research program revenue interest granted to Paul Capital Partners' Paul Royalty Fund II, LP in August 2006.
Dyax is a pharmaceutical company based in Cambridge, Mass.
Issuer: | Dyax Corp.
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Issue: | Loan
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Amount: | $50 million
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Maturity: | August 2016
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Coupon: | 16%
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Price: | Par
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Yield: | 16%
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Conversion ratio: | Into 18,181,818 shares
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Warrants: | For 250,000 shares
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Warrant expiration: | Aug. 5, 2016
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Warrant strike price: | $5.50
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Investor: | Cowen Healthcare Royalty Partners, LP
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Settlement date: | Aug. 5
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Stock symbol: | Nasdaq: DYAX
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Stock price: | $4.50 at close Aug. 5
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