18-month debt, warrants issued to Oxford Finance, Silicon Valley Bank
By Devika Patel
Knoxville, Tenn., July 30 – Ocera Therapeutics Inc. said it arranged a $20 million debt facility with Oxford Finance LLC and Silicon Valley Bank.
The initial $10 million tranche settled on Thursday, with the remainder available until Dec. 31, 2016.
The secured note matures in 18 months. It is repayable in interest-only installments, with a six-month extension upon the drawing of the second tranche. The note bears interest at a rate fixed at the funding date of each tranche.
The investors also will receive 4% warrant coverage.
Proceeds will be for development of the company’s molecule OCR-002 to treat acute and chronic hepatic encephalopathy.
Ocera Therapeutics is a biopharmaceutical company based in Palo Alto, Calif.
| Issuer: | Ocera Therapeutics Inc.
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| Issue: | Debt facility
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| Amount: | $20 million
|
| Maturity: | 18 months
|
| Warrants: | 4% coverage
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| Investors: | Oxford Finance LLC and Silicon Valley Bank
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| Settlement date: | July 30 (for $10 million), by Dec. 31, 2016 for remainder
|
| Stock symbol: | Nasdaq: OCRX
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| Stock price: | $3.90 at close July 29
|
| Market capitalization: | $75.83 million
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