By Jennifer Chiou
New York, Sept. 7 - Elite Pharmaceuticals, Inc. said it completed a $4,155,000 bond financing through the New Jersey Economic Development Authority.
The bond issue was comprised of $3.66 million of 6½% tax-exempt bonds with an outside maturity of Sept. 1, 2030 and $495,000 of 9% bonds with an outside maturity of Sept. 1, 2012.
Proceeds will go towards redeeming tax-exempt bonds the authority issued in September 1999 and refinancing equipment financing. The company will also use about $1 million to purchase additional equipment for the manufacture and development of pharmaceutical products.
Elite will be required to maintain a $415,500 debt service reserve fund, compared to the $300,000 reserve fund required under the bonds issued in September 1999.
A lien on the company's facility and equipment secured payment of the bonds.
Based in Northvale, N.J., Elite is a specialty pharmaceutical company that specializes in oral controlled-release products for pain management, allergy, cardiovascular therapeutics and infection.
Issuer: | New Jersey Economic Development Authority
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Issue: | Municipal bonds on behalf of Elite Pharmaceuticals, Inc.
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Total amount: | $4,155,000
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Announcement date: | Sept. 7
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Tax-exempt bonds
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Amount: | $3.66 million
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Coupon: | 6½%
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Outside maturity: | Sept. 1, 2030
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Taxable bonds
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Amount: | $495,000
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Coupon: | 9%
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Outside maturity: | Sept. 1, 2012
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