PolyMedix Restructures Its Debt and Secures $12 Million Credit Facility
RADNOR, Pa., April 10, 2012 (GLOBE NEWSWIRE) -- PolyMedix, Inc. (OTCBB: PYMX), a biotechnology company focused on developing innovative therapeutic drugs to treat serious acute-care conditions, announced that it has entered into a loan and security agreement with MidCap Financial LLC. Through the secured term loan, MidCap will provide PolyMedix with up to $12 million in capital. Proceeds from the facility were used to pay-off PolyMedix's existing debt facility and for general working capital purposes.
Edward Smith, Vice President Finance & CFO of PolyMedix, commented, "We are very pleased with this new facility, which refinances at a lower cost of capital, improves our cash flow, and strengthens our balance sheet. All of these provide us with greater flexibility in advancing the development of our programs."
PolyMedix received an initial advance of $8.0 million at closing. A second tranche of $4.0 million is available subject to the terms of the facility. The facility provides for interest-only payments for the first nine months and bears a per annum interest rate fixed at 11.95%. Approximately $5.7 million of the proceeds were used to pay off PolyMedix's previously outstanding credit facility. The remaining proceeds will be used for general working capital purposes. MidCap received a five-year warrant to purchase 161,290 shares of PolyMedix common stock at an exercise price equal to $1.24 per share based on the initial advance. The warrant will be exercisable for an additional number of shares if the second tranche is advanced.
About MidCap Financial LLC
MidCap Financial is a commercial finance company focused on middle market lending in healthcare and other specialty vertical markets. MidCap specializes in middle market loans in the $10 million to $200 million range. Its principal officers are all veterans of the healthcare finance industry, having worked together at three healthcare finance companies previously. The company is headquartered in Bethesda, MD, with offices in Chicago and Los Angeles. Additional information about MidCap Financial can be found at www.midcapfinancial.com. |
