Horizon Pharma Secures $60 Million Loan Facility
DEERFIELD, IL, Feb 22, 2012 (MARKETWIRE via COMTEX) -- Horizon Pharma, Inc. announced today that it has entered into a loan agreement with a group of lenders to provide $60 million in capital. Horizon used $22.4 million of the loan proceeds to repay the remaining obligations under its loan agreements with Oxford Finance LLC, Silicon Valley Bank and Kreos Capital III (UK) Limited, and expects to use the remainder of the capital to fund the ongoing commercial launch of DUEXIS(R) in the U.S., and to pursue regulatory approval for DUEXIS in Europe and LODOTRA(R) in the U.S.
"This transaction provides Horizon with funding to facilitate our U.S. launch of DUEXIS and allows us to pursue regulatory and marketing approval for DUEXIS in Europe and LODOTRA in the U.S. while managing shareholder dilution," said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma.
Under the terms of the loan facility, the outstanding principal accrues interest until maturity in January 2017 at a rate of 17% per annum (12% cash, 5% PIK), payable quarterly unless repaid earlier. Beginning in April 2013, and each quarter thereafter, the lenders may require the company to repay approximately $4.0 million of the loan principal. Horizon may also prepay the loan at any time, at its option, subject to certain prepayment premiums. In connection with the loan facility, the company also issued warrants to the lenders to purchase up to an aggregate of approximately 3.3 million shares of common stock at an exercise price of $0.01 per share.
Stifel Nicolaus Weisel, JMP Securities LLC, and Cowen and Company, LLC served as financial advisors and financing agents on this transaction. Horizon expects to file a Current Report on Form 8-K with the Securities and Exchange Commission that will contain a more detailed disclosure concerning this financing.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of any such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Horizon Pharma Horizon Pharma, Inc. is a biopharmaceutical company that is developing and commercializing innovative medicines to target unmet therapeutic needs in arthritis, pain and inflammatory diseases. For more information, please visit www.horizonpharma.com .
This press release contains forward-looking statements, including statements regarding Horizon's expected use of proceeds of the loan facility and future payments under the loan facility. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release, and actual results may differ materially from those in these forward-looking statements as a result of various factors. These factors include, but are not limited to, risks regarding Horizon's ability to commercialize DUEXIS in the U.S. and pursue additional regulatory approvals for DUEXIS and LODOTRA, unexpected future requirements for cash resources, the possibility of early maturity of the loan facility or requirements to prepay all or part of the outstanding balance of the loan facility and Horizon's ability to comply with the covenants and obligations under the loan facility and related agreements. For a further description of these and other risks facing the Company, please see the risk factors described in the Company's filings with the United States Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in those filings. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update or revise these statements, except as may be required by law.
Robert J. De Vaere
Executive Vice President and Chief Financial Officer
Burns McClellan, Inc.
SOURCE: Horizon Pharma