By Sheri Kasprzak
New York, March 30 - Zila, Inc. said it has secured a $40 million credit facility including a $20 million term loan credit facility and a $20 million incremental term loan facility.
The 14% facility matures on March 24, 2008.
Investor Black Diamond Commercial Finance, LLC will receive warrants for 1.2 million shares, exercisable at $3.79 each through March 26, 2011.
Zila has agreed to use half of the proceeds from any sale and leaseback of manufacturing and laboratory facility to repay balances under the facility.
The company, based in Phoenix, develops preventative health care products.
| Issuer: | Zila, Inc.
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| Issue: | Term loan credit facility and incremental term loan facility
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| Amount: | $40 million
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| Maturity: | March 24, 2008
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| Coupon: | 14%
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| Price: | Par
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| Yield: | 14%
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| Warrants: | For 1.2 million shares
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| Warrant expiration: | March 26, 2011
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| Warrant strike price: | $3.79
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| Investor: | Black Diamond Commercial Finance, LLC
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| Settlement date: | March 24
|
| Stock symbol: | Nasdaq: ZILA
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| Stock price: | $3.15 at close March 24
|
| Stock price: | $3.14 at close March 30
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