Deal includes warrant for 508,476 common shares, exercisable at $1.18
By Devika Patel
Knoxville, Tenn., Dec. 31 – Zogenix, Inc. arranged a $24 million loan with a lending party that includes Oxford Finance LLC and Silicon Valley Bank on Dec. 30, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Oxford was the agent.
The loan consists of a $20 million term loan and a $4 million revolving line. It bears interest at the greater of 8.75% and Prime plus 525 basis points and matures on Dec. 1, 2018. The loan may be prepaid with a premium ranging from 1% to 3%.
The investors also will receive warrants for 508,476 common shares. The 10-year warrant is exercisable at $1.18, a 4.07% discount to the Dec. 29 closing share price of $1.23.
The company paid a $200,000 term loan facility fee and a $32,000 revolving line commitment fee. Three additional $32,000 revolving line fees will be due.
San Diego-based Zogenix is a pharmaceutical company focused on medicines to treat central nervous system disorders and pain.
| Issuer: | Zogenix, Inc.
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| Issue: | Term loan
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| Amount: | $600,000
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| Maturity: | Dec. 1, 2018
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| Coupon: | The greater of 8.75% and Prime plus 525 bps
|
| Call: | At prices ranging from 101 to 103
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| Warrants: | For 508,476 shares
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| Warrant expiration: | 10 years
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| Warrant strike price: | $1.18
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| Agent: | Oxford Finance LLC
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| Investor: | Oxford Finance LLC and Silicon Valley Bank
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| Fees: | $328,000
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| Pricing date: | Dec. 30
|
| Stock symbol: | Nasdaq: ZGNX
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| Stock price: | $1.23 at close Dec. 29
|
| Market capitalization: | $211.2 million
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