10.57% debt due in 42 months, may be prepaid; investor gets warrants
By Devika Patel
Knoxville, Tenn., Feb. 9 - Oncothyreon Inc. completed a secured loan agreement with General Electric Capital Corp. on Feb. 8, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The loan will be for $5 million initially and the company may borrow an additional $7.5 million.
The loan is due in 42 months and initially carries a 10.57% coupon. It may be prepaid with a premium. During the first nine months of the term loan, Oncothyreon is only required to pay interest.
The interest will accrue at a fixed rate of 9.45% per annum plus the greater of 0.54% and the three-year Treasuries Constant Maturity Swap rate that is in effect on the day that is three business days prior to settlement.
The investors also received warrants for 48,701 shares, which are exercisable at $3.08 for seven years. The strike price reflects a 0.65% premium to the Feb. 7 closing share price of $3.06.
Proceeds will be used for general corporate purposes.
Oncothyreon is an Edmonton, Alta., biotechnology company.
| Issuer: | Oncothyreon Inc.
|
| Issue: | Secured loan
|
| Amount: | $12.5 million
|
| Maturity: | 42 months
|
| Coupon: | 10.57%
|
| Call: | Yes
|
| Warrants: | For 48,701 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $3.08
|
| Investor: | General Electric Capital Corp.
|
| Settlement date: | Feb. 8
|
| Stock symbol: | Nasdaq: ONTY
|
| Stock price: | $3.06 at close Feb. 8
|
| Market capitalization: | $91.97 million
|
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