Navidea Biopharmaceuticals $56.16 million term loan debt accelerated

By Caroline Salls

Pittsburgh, June 2 – Navidea Biopharmaceuticals, Inc.’s term loan obligations were accelerated in the amount of $56.16 million, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The company said it received a notice in April from secured parties Capital Royalty Partners II LP, Capital Royalty Partners II – Parallel Fund “A” LP and Parallel Investment Opportunities Partners II LP claiming that events of default, unrelated to repayment terms, had occurred under the loan agreement.

Navidea said it disputes the amounts claimed to be due and believes that the secured parties do not have the right to accelerate the loan.

On Wednesday, the secured parties filed a second amended petition and application for a temporary injunction in the District Court of Harris County, Texas, seeking to restrain Navidea and its subsidiary guarantors from operating or using new accounts without having first entered into requisite blocked account control and pledge collateral account control agreements. A hearing on that application is scheduled for June 9.

In addition, the company said it is continuing to explore alternative financing arrangements in order to refinance the term loan debt. Navidea said it believes that the actions of the secured parties are a violation of the loan agreement and that its best course of action is to refinance the debt and pursue its claims for damages.

Navidea is a Dublin, Ohio-based biomedical company focused on precision diagnostic radiopharmaceuticals to help identify sites and pathways of undetected disease.

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