Anthera Refinances Existing Debt with New $20 Million Credit Facility and Secures $18.5 Million Committed Equity Financing Facility Debt Related Expense to Decrease by Over $600K per Month through 2014
HAYWARD, Calif., April 5, 2013 /PRNewswire/ -- Anthera Pharmaceuticals, Inc. (Nasdaq: ANTH), a biopharmaceutical company developing drugs to treat serious diseases associated with inflammation, today announced that it has secured a new $20.0 million debt financing facility through a syndicate led by MidCap Financial SBIC, LP ("MidCap Financial"). Anthera will use the loan proceeds to refinance the remaining principal of the loan agreement entered into with Hercules Technology Growth Capital, Inc. in 2011 and for general corporate purposes. MidCap Financial will receive warrants to purchase an aggregate of 588,235 shares of Anthera's common stock at an exercise price of $0.68.
"The favorable terms of the new debt financing facility, coupled with our January 2013 equity financing of approximately $43.0 million of net proceeds, provides the liquidity we need to deliver key milestones for 2013 and 2014," said Chris Lowe, Anthera's Chief Business Officer and Chief Financial Officer.
Additionally, Anthera has entered into an $18.5 million common stock purchase agreement with Lincoln Park Capital Fund, LLC ("LPC") a Chicago-based institutional investor. Upon executing the agreement, LPC made an initial purchase of $2,000,000 in common stock from Anthera at a purchase price of $0.648 per share. Furthermore, for a period of two years, Anthera has the right to sell up to an additional $16.5 million of its common stock to LPC at prices that are generally determined by the Company. Anthera expects to use the proceeds from this transaction for servicing long-term debt and working capital.
Under the terms of the agreement, there are no upper limits to the price that LPC may pay to purchase Anthera's common stock. Anthera will control the timing of any future sales and the amount of shares to be sold. LPC has no right to require any sales and is obligated to purchase the common stock as directed by Anthera. Under the terms of the agreement, LPC has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of Anthera's shares of common stock. In consideration for entering into the agreement, Anthera may issue up to 898,059 of additional shares to LPC as a commitment fee, depending upon the actual amount drawn from the equity line. The shares covered under the agreement are the subject of a prospectus supplement pursuant to Anthera's effective shelf registration statement and base prospectus contained therein.
The descriptions of the financings in this press release do not purport to be a complete description. Additional details regarding these financings are included in a Current Report on Form 8-K filed on April 5, 2013 by the Company with the Securities and Exchange Commission.
About Anthera Pharmaceuticals
Anthera Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing products to treat serious diseases associated with inflammation and autoimmune disorders.
About MidCap Financial
MidCap Financial is a commercial finance company focused on middle market lending across the healthcare sector. MidCap specializes in $5 million to $200 million loans and since launching in 2008 has deployed over $1 billion in capital. The company is headquartered in Bethesda, MD, with offices in Chicago and Los Angeles. For more information, please visit www.midcapfinancial.com
About Lincoln Park Capital Fund, LLC ("LPC")
LPC is an institutional investor headquartered in Chicago, Illinois. LPC's experienced professionals manage a portfolio of investments in public and private entities. These investments are in a wide range of companies and industries emphasizing life sciences, specialty financing, energy and technology. LPC's investments range from multiyear financial commitments to fund growth to special situation financings to long-term strategic capital offering companies certainty, flexibility and consistency. For more information, visit www.lpcfunds.com.
Safe Harbor Statement
Any statements contained in this press release that refer to future events or other non-historical matters, including statements that are preceded by, followed by, or that include such words as "estimate," "intend," "anticipate," "believe," "plan," "goal," "expect," "project," or similar statements, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Anthera's expectations as of the date of this press release and are subject to certain risks and uncertainties that could cause actual results to differ materially as set forth in Anthera's public filings with the SEC, including Anthera's Annual Report on Form 10-K for the year ended December 31, 2012. Anthera disclaims any intent or obligation to update any forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law.
CONTACT: Chris Lowe of Anthera Pharmaceuticals, Inc., firstname.lastname@example.org or 510.856.5600.
SOURCE Anthera Pharmaceuticals, Inc.