Offering includes warrants and finances $4.5 million debt repayment
By Devika Patel
Knoxville, Tenn., March 16 - Tengion, Inc. completed a loan agreement with Horizon Technology Finance Corp. on March 14, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The $5 million loan is evidenced by a secured promissory note.
The loan is due Jan. 1, 2014 and carries an 11.75% coupon.
Horizon also received five-year warrants for 70,761 shares, which are exercisable at $2.88, a 9.09% premium to the March 11 closing share price of $2.64.
Proceeds were used to reduce debt. The company used about $4.5 million to repay its debt to Horizon Technology Funding Co. LLC and Compass Horizon Funding Co. LLC. The remaining proceeds will be used for working capital purposes.
Located in King of Prussia, Pa., Tengion develops autologous neo-organs and tissues, such as bladders, that are derived from the patient's own (autologous) cells.
| Issuer: | Tengion, Inc.
|
| Issue: | Loan evidenced by secured promissory note
|
| Amount: | $5 million
|
| Maturity: | Jan. 1, 2014
|
| Coupon: | 11.75%
|
| Price: | Par
|
| Yield: | 11.75%
|
| Warrants: | For 70,761 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.88
|
| Investor: | Horizon Technology Finance Corp.
|
| Settlement date: | March 14
|
| Stock symbol: | Nasdaq: TNGN
|
| Stock price: | $2.74 at close March 14
|
| Market capitalization: | $32.62 million
|
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