Terms Defer Principal Repayment and Lock In Lower Interest Rate
PARSIPPANY, N.J.--(BUSINESS WIRE)--May. 3, 2012--
Pharmaceuticals, Inc. (NASDAQ:PCRX) today announced that it has
secured a $27.5 million debt financing facility through Oxford Finance.
Pacira will use the proceeds from this financing to refinance the
remaining principal of its outstanding term loan and for general
corporate purposes. The refinancing allows Pacira to defer the first
monthly payment of principal until December 1, 2013. In addition, the
refinancing was achieved at a lower interest rate compared to the
existing term loan rate and the interest rate is fixed, eliminating any
future interest rate risk.
“This debt refinancing, coupled with our recently announced equity
financing that resulted in $63.2 million of net proceeds, secures the
strong balance sheet that we need to fully leverage the value-generating
opportunities inherent in EXPAREL® (bupivacaine liposome
injectable suspension),” said James S. Scibetta, chief financial officer
of Pacira. “We recently launched EXPAREL in the United States, and we
will have six quarters of sales behind us by the time our initial
monthly principal obligation begins at the end of 2013. Our reinforced
balance sheet should also allow us to expand the indications for EXPAREL
and pursue potential ex-U.S. partnerships from a position of strength.”
The facility includes an interest rate of 9.75% and requires monthly
interest-only payments until December 2013, followed by a 30-month
principal amortization period. In addition, Oxford Finance will receive
warrants to purchase an aggregate of 162,885 shares of Pacira common
stock at an exercise price of $10.97.
The description of the debt financing in this press release does not
purport to be a complete description. The statements in this press
release are qualified in their entirety by reference to the description
of the debt financing transaction contained in a Current Report on Form
8-K filed by Pacira with the Securities and Exchange Commission and the
debt financing documents that will be attached as exhibits to the
Quarterly Report on Form 10-Q that will be filed by Pacira with the SEC.
Pacira Pharmaceuticals, Inc. (NASDAQ:PCRX) is an emerging specialty
pharmaceutical company focused on the clinical and commercial
development of new products that meet the needs of acute care
practitioners and their patients. The company's current emphasis is the
development of non-opioid products for postsurgical pain control, and
its lead product, EXPAREL® (bupivacaine liposome injectable
suspension), was commercially launched in the United States in April
2012. EXPAREL and two other commercially available products have
utilized the Pacira proprietary product delivery technology DepoFoam®,
a unique platform that encapsulates drugs without altering their
molecular structure and then releases them over a desired period of
time. Additional information about Pacira is available at http://www.pacira.com.
Certain of the statements made in this press release are forward
looking, such as those, among others, relating to expanding the
indications for EXPAREL and entering into potential ex-U.S.
partnerships. Actual results or developments may differ materially from
those projected or implied in these forward-looking statements. Factors
that may cause such a difference include, without limitation, the
adequacy of available cash and available amounts under our credit
facilities to meet our future liquidity needs, our ability to
successfully research, develop and obtain and maintain regulatory
approvals for our product candidates and general economic and industry
conditions. Additional risks and uncertainties relating to the proposed
offering, Pacira and our business are discussed in the "Risk Factors"
section of our most recent Annual Report on Form 10-K for the fiscal
year ended December 31, 2011 and in other filings that we periodically
make with the SEC. In addition, the forward-looking statements included
in this press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments will
cause our views to change. However, while we may elect to update these
forward-looking statements at some point in the future, we specifically
disclaim any obligation to do so. These forward-looking statements
should not be relied upon as representing our views as of any date
subsequent to the date of this press release.
Source: Pacira Pharmaceuticals, Inc.
Pacira Pharmaceuticals, Inc.
Dan Budwick, 973-271-6085