Cardiome Pharma Amends Term-Loan Agreement with CRG

Cardiome Pharma said early Monday it has amended its term-loan agreement with CRG-managed funds originally entered into last June. The amended agreement now provides Cardiome with up to $50 million of available borrowing capacity. The amended loan matures on March 31, 2022.

The revised agreement bears interest at 13% per annum. Interest payments may be split, at the company’s option, between 9% per annum in cash interest and 4% per annum in paid in-kind interest in the form of additional term loans until March 31, 2020. In consideration for entering into the amended agreement, CRG will receive 700,000 transferrable warrants with a strike price of $4.00. The warrants are subject to a four-month hold period and are exercisable until May 10, 2022.

Under the original agreement, CRG provided $20 million to the company for general working capital purposes and to retire existing debt at the time. Under the revised agreement, CRG will provide an additional $10 million to the company on the effective date of the amended agreement and two additional tranches of $10 million each are available to the company subject to certain conditions.