Collegium Pharmaceutical, Inc. Enters Amendment to Loan and Security Agreement with Silicon Valley Bank
January 10, 2018 at 07:31 pm IST
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Collegium Pharmaceutical, Inc. entered into a consent and sixth amendment to loan and security agreement with Silicon Valley Bank, a California corporation (SVB), to amend that certain Loan and Security Agreement dated as of August 28, 2012, as previously amended from time to time (as so amended, the Loan and Security Agreement). The Consent and Amendment provides the Company with a new term loan facility in an original principal amount of $11,500,000 (the new term loan), which replaces the Company's existing term loan facility (the existing term loan) and the proceeds of which will be used by the Company to (i) finance certain payment obligations under the Commercialization Agreement and (ii) to repay the balance of the Existing Term Loan. The Consent and Amendment also provides SVB's consent with respect to various transactions contemplated by the Commercialization Agreement, including the delivery by SVB of a standby letter of credit in an aggregate amount of $33,750,000. The new term loan bears interest at a rate per annum of 0.75% above the prime rate. The company will repay the new term loan in equal consecutive monthly installments of principal plus monthly payments of accrued interest, commencing on July 1, 2019, provided that, if the company achieves EBITDA (as defined in the Consent and Amendment) in excess of $2,500,000 for two (2) consecutive calendar quarters prior to June 30, 2019, such payments will commence on January 1, 2020. All outstanding principal and accrued and unpaid interest under the new term loan, and all other outstanding obligations with respect to the new term loan, are due and payable in full on December 1, 2022.
Collegium Pharmaceutical, Inc. is a diversified specialty pharmaceutical company. The Company commercializes its pain portfolio, consisting of Xtampza extended-release (ER), Nucynta ER and Nucynta immediate-release (IR), Belbuca, and Symproic in the United States. Xtampza ER is an abuse-deterrent, extended-release, oral formulation of oxycodone. Xtampza ER is a pain treatment option designed with abuse deterrent properties and uses a technology platform, DETERx. The Nucynta Products are ER and IR oral formulations of tapentadol. Nucynta ER is indicated for the management of severe and persistent pain that requires an extended treatment period with a daily opioid analgesic. Nucynta IR is indicated for the management of acute pain severe enough to require an opioid analgesic. Belbuca is a buccal film that contains buprenorphine for severe and persistent pain. Symproic is used for the treatment of opioid-induced constipation (OIC) in adult patients with chronic non-cancer pain.