Investor also gets 140,000 seven-year warrants for every $10 million
By Devika Patel
Knoxville, Tenn., May 7 - MAKO Surgical Corp. arranged a $50 million three-year loan facility with Deerfield Management Co., LP on May 7, according to an 8-K filed Monday with the Securities and Exchange Commission. The 6.75% loan may be drawn in $10 million increments until May 15, 2013.
The tranches are repayable three years after each draw. If no funds have been drawn by May 15, 2013, the company must pay Deerfield a $1 million fee.
Deerfield also received seven-year warrants for 275,000 common shares. These warrants will have an exercise price equal to a 20% premium to the mean closing price of the stock over the 20 trading days beginning May 8. Each $10 million tranche will be accompanied by seven-year warrants for 140,000 shares with an exercise price equal to a 20% premium to the mean closing price of the stock over the five trading days following the draw notice.
Based in Fort Lauderdale, Fla., MAKO makes knee replacement medical devices.
| Issuer: | MAKO Surgical Corp.
|
| Issue: | Loan facility
|
| Amount: | $50 million
|
| Maturity: | Three years
|
| Coupon: | 6.75%
|
| Warrants: | Warrants for 275,000 shares initially; warrants for 140,000 shares for every $10 million drawn
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | For initial warrants, 20% premium to the mean closing price of the stock over the 20 trading days beginning May 8; after that, 20% premium to the mean closing price of the stock over the five trading days following the draw notice
|
| Investor: | Deerfield Management Co, LP
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| Pricing date: | May 7
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| Stock symbol: | Nasdaq: MAKO
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| Stock price: | $39.67 at close May 4
|
| Market capitalization: | $1.76 billion
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