Lexicon Pharmaceuticals bifurcates $75 million tranche of loan

By Wendy Van Sickle

Columbus, Ohio, June 28 – Lexicon Pharmaceuticals Inc. amended its loan and security agreement on June 23 with Oxford Finance LLC to divide a third tranche under which $75 million was previously available for draw prior to June 30, according to an 8-K filing with the Securities and Exchange Commission.

As a result, $50 million continues to be available to draw until June 30, and $25 million will be available to draw between Dec. 1 and Dec. 31, 2023.

The previous fourth tranche, under which $25 million is available for draw at any time prior to the expiration of the interest-only payment period, is now a fifth tranche.

The index rate applicable to each tranche will transition to one-month CME term SOFR from 30-day U.S. dollar Libor. The spread of 700 basis points is a reduction of 90 bps for the third and fourth tranches.

The Woodlands, Texas-based Lexicon is a biopharmaceutical company with clinical-stage programs for drugs to treat diseases, including diabetes.

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