BioDelivery Sciences International, Inc. (NASDAQ: BDSI) announced today that it has secured an additional $20.7 million in gross debt funding from MidCap Financial to bring BDSI's total outstanding debt with MidCap to $30 million in a single senior secured loan.
The proceeds of the loan strengthen BDSI's cash position as the company focuses its efforts behind the ongoing commercial launch of BUNAVAIL®.
In addition to the increasing size of BDSI's facility with MidCap, the amended and restated facility lowers the overall cost of the company's debt with MidCap through a reduction in loan-related fees. The secured loan has a term of 42 months with interest only payments for the first 12 months. The interest rate is 8.45% plus a LIBOR floor of 0.5%.
Dr. Mark A. Sirgo, President and Chief Executive Officer of BDSI, stated, "This funding bolsters our available capital resources well into 2016 as we continue to make a concentrated effort behind the launch of BUNAVAIL. In addition, we see this as a positive, non-dilutive way to lower our overall cost of debt while extending our cash runway. We are pleased to partner again with MidCap and we thank them for their continued confidence in our business."
BDSI and MidCap originally entered into a $20 million secured loan facility in 2013 which has subsequently been paid down to approximately $9.3 million.
Additional details regarding this transaction are expected to be made available in a Current Report on Form 8-K to be filed by BDSI with the Securities and Exchange Commission.
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