Discovery Labs, Merrill Lynch Capital Sign $12.5M Credit Accord
Discovery Laboratories of Warrington, Pa., announced May 23 that it has entered into a $12.5 million secured credit facility with Merrill Lynch Capital to finance capital expenses and pay off existing equipment financing indebtedness.
Terms of the credit facility include:
- $9 million is available immediately to Discovery Labs, of which $3.9 million will be applied to the prepayment of outstanding equipment financing indebtedness and will be payable in equal monthly installments over 27 months.
- Up to another $3.5 million will be available as the company raises new capital through business development partnerships, stock offerings and other similar financings.
- A draw period of 12 months, with the potential to extend the draw period an additional six months.
- Loan funds used to purchase new property and equipment will be payable in equal monthly installments over 36 months. Loan funds used to purchase leasehold improvements, installation and other related costs will be payable in equal monthly installments over 24 months.
John Cooper, Discovery Labs' executive vice president and chief financial officer, said in a statement that the new credit facility will allow the company to finance key capital expense programs as it prepares for potential FDA approval of Surfaxin in 2008; Surfaxin is designed to prevent respiratory distress syndrome in premature infants. The facility will also further advance the company’s surfactant replacement therapy pipeline.
Medivation Inks 16,592-Square-Foot Office Lease in San Francisco
Medivationhas agreed to lease 16,592 square feet of office space at 201 Spear Street in San Francisco, in a deal announced by the Staubach Company.
Medivation will relocate within San Francisco and expand from 5,700 square feet at 55 Hawthorne St. Staubach closed the deal within 70 days of the start of the search project and was also hired by Medivation to manage its construction process.
David Linsmayer, vice president of the Staubach Company, represented Medivation in the lease negotiation; Steve Anderson and Bryan Ivie of the CAC Group, landlord CREA Spear Street Terrace LLC.
Medivation is a biopharmaceutical company developing small-molecule drugs to treat Alzheimer's disease, Huntington's disease, and hormone-refractory prostate cancer.