By Devika Patel
Knoxville, Tenn., June 5 - Exelixis, Inc. announced that it has secured a $150 million credit facility with Deerfield Management.
The funds can be drawn in $15 million increments at any time over the next 18 months at Exelixis' discretion. Exelixis is under no obligation to draw on the facility and can terminate the agreement without penalty at any time.
Funds drawn will be repayable in five years and can be repaid in common shares or cash at any time during the term of the agreement.
Exelixis will pay a quarterly commitment fee at a rate of 2.25% per annum, and amounts drawn will accrue interest until maturity at a rate of 6.75% per annum.
Outstanding principal and unpaid interest, if any, are due in June 2013, subject to acceleration in specified circumstances, and may be prepaid in whole or in part at any time without penalty
Deerfield received warrants for 1 million common shares, exercisable at C$7.40 per share. If Exelixis draws on the facility, Deerfield will receive warrants for an additional 10 million shares, in increments of 400,000 shares per $15 million drawdown.
In addition, Exelixis will issue warrants for 800,000 shares with each $15 million draw at an exercise price equal to 20% above the average of the daily volume weighted average stock price for each of the 15 trading days following the day on which Exelixis notifies Deerfield that it is drawing the funds.
Exelixis is a South San Francisco, Calif., biotechnology company.
Issuer: Exelixis, Inc.
| Issue: | Credit facility
|
| Amount: | $150 million
|
| Tenor: | June 2013
|
| Coupon: | 6.75%
|
| Warrants: | For 1 million shares
|
| Warrant strike price: | C$7.40
|
| Investor: | Deerfield Management
|
| Pricing date: | June 5
|
| Stock symbol: | Nasdaq: EXEL
|
| Stock price: | $6.16 at close June 4
|
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