By Devika Patel
Knoxville, Tenn., June 17 - Arena Pharmaceuticals, Inc. said it arranged a $100 million credit facility with Deerfield Management.
Under the credit facility, interest accrues until maturity in June 2013 at a rate of 7.75%, which will be payable quarterly.
The principal is required to be repaid as follows: 10% at the end of the first year, 20% at the end of the second year, 30% at the end of the third year and the remainder at the end of the fourth year.
Deerfield will also receive warrants for 28 million common shares, exercisable at $5.42 until June 2013.
During the next two years, Deerfield may elect to provide Arena with up to an additional $20 million under the same terms. For each additional $1 million, Deerfield will receive additional warrants for 280,000 shares.
Piper Jaffray & Co. is the agent.
Arena is a San Diego-based biopharmaceutical company.
| Issuer: | Arena Pharmaceuticals, Inc.
|
| Issue: | Credit facility
|
| Amount: | $100 million
|
| Maturity: | June 2013
|
| Coupon: | 7.75%
|
| Price: | Par
|
| Yield: | 7.75%
|
| Warrants: | For 280,000 shares per $1 million in funding (28 million warrants)
|
| Warrant expiration: | June 2013
|
| Warrant strike price: | $5.42
|
| Agent: | Piper Jaffray & Co.
|
| Investor: | Deerfield Management
|
| Pricing date: | June 17
|
| Stock symbol: | Nasdaq: ARNA
|
| Stock price: | $5.16 at close June 16
|
| Market capitalization: | $416 million
|
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