CONCORD, Calif.--(BUSINESS WIRE)--
Cerus Corporation (Nasdaq: CERS) today announced the closing of a new
debt facility with MidCap Financial (MidCap) which is expandable up to
$90 million. The debt facility consists of a staged $70 million term
loan and a $5 million revolving line of credit, expandable up to $20
million.
The new term loan provides an initial tranche of $40 million at closing.
Cerus has the option to draw on two additional $15 million tranches
contingent upon the achievement of specific clinical and commercial
milestones. The first optional tranche is available to Cerus upon either
CE Mark approval for the INTERCEPT red blood cell system or a PMA
supplement approval for INTERCEPT cryoprecipitate. A second option is
available upon Cerus’ achievement of certain predetermined revenue
levels. A portion of the initial proceeds will be used to retire the
Company’s existing term loan of approximately $29 million. In addition
to the term loan, the Company closed on a $5 million revolving loan to
help fund investment in working-capital to meet the growth in the
business over the next several years. The revolving facility can expand
to $20 million based on mutual agreement.
“The non-dilutive financing provides Cerus with additional capital and
flexibility to fund our growth initiatives,” said Kevin D. Green, Cerus’
vice president, finance and chief financial officer. “The new term loan
not only provides Cerus with additional capital at an attractive rate,
but the amortization is deferred for 36 months and can be extended for
an additional 12 months upon achievement of predetermined revenue levels
allowing us to focus on business execution.”
“MidCap was a true collaborative partner during this entire process,”
continued Green. “As a testament to MidCap’s industry expertise in life
science lending, their appreciation and understanding of our business
opportunity and the Company’s mission to make INTERCEPT the global
standard of care was clearly evident.”
ABOUT CERUS
Cerus Corporation is a biomedical products company focused in the field
of blood transfusion safety. The INTERCEPT Blood System is designed to
reduce the risk of transfusion-transmitted infections by inactivating a
broad range of pathogens such as viruses, bacteria and parasites that
may be present in donated blood. The nucleic acid targeting mechanism of
action of the INTERCEPT treatment is designed to inactivate established
transfusion threats, such as hepatitis B and C, HIV, West Nile virus and
bacteria, as well as emerging pathogens such as chikungunya, malaria and
dengue. Cerus currently markets and sells the INTERCEPT Blood System for
both platelets and plasma in the United States, Europe, the Commonwealth
of Independent States, the Middle East and selected countries in other
regions around the world. The INTERCEPT red blood cell system is in
clinical development. See http://www.cerus.com
for information about Cerus.
About Midcap Financial
MidCap Financial is a middle market-focused, specialty finance firm that
provides senior debt solutions to companies across all industries.
MidCap is headquartered in Bethesda, MD, with offices in Chicago and Los
Angeles, and provides a broad array of products intended to finance
growth and manage working capital. For more information, visit www.midcapfinancial.com.
MidCap Financial refers to MidCap FinCo Designated Activity Company, a
private limited company domiciled in Ireland, and its subsidiaries,
including MidCap Financial Services, LLC. MidCap Financial Services, LLC
employs all personnel and provides sourcing, due diligence and portfolio
management services to MidCap FinCo Designated Activity Company pursuant
to a services agreement. MidCap Financial is managed by Apollo Capital
Management, L.P., a subsidiary of Apollo Global Management (NYSE:APO),
pursuant to an investment management agreement.
Forward-Looking Statements
Except for the historical statements contained herein, this press
release contains forward-looking statements concerning Cerus’
expectations, opportunities and prospects, including statements
concerning the availability of the two additional tranches under the
debt facility with MidCap, the size of the revolving facility with
MidCap, the quote from Cerus’ vice president, finance and chief
financial officer, and other statements that are not historical facts.
Actual results could differ materially from these forward-looking
statements as a result of certain factors, including, without
limitation: risks associated with the satisfaction of the conditions to
the funding of the two additional tranches under the debt facility with
MidCap and Cerus’ ability to maintain (and otherwise comply with the
covenants in) the debt facility and revolving facility with MidCap;
risks associated with Cerus’ ability to meet its debt service
obligations and its need for additional funding; risks associated with
the commercialization and market acceptance of, and customer demand for,
the INTERCEPT Blood System; risks associated with Cerus’ lack of
commercialization experience in the United States and its ability to
develop and maintain an effective and qualified U.S.-based commercial
organization, as well as the resulting uncertainty of its ability to
achieve market acceptance of and otherwise successfully commercialize
the INTERCEPT Blood System for platelets and plasma in the United
States; risks related to Cerus’ ability to commercialize the INTERCEPT
Blood System in the United States without infringing on the intellectual
property rights of others; risks related to Cerus’ ability to
demonstrate to the transfusion medicine community and other health care
constituencies that pathogen reduction and the INTERCEPT Blood System is
safe, effective and economical; the uncertain and time-consuming
development and regulatory process, including the risks (a) that Cerus
may be unable to comply with the FDA’s post-approval requirements for
the INTERCEPT platelet and plasma systems, including by successfully
completing required post-approval studies, which could result in a loss
of U.S. marketing approval for the INTERCEPT platelet and/or plasma
systems, (b) related to Cerus’ ability to expand the label claims and
product configurations for the INTERCEPT platelet and plasma systems in
the United States, which will require additional regulatory approvals
and (c) that Cerus may be unable to obtain any regulatory approvals of
the INTERCEPT red blood cell system in a timely manner or at all; risks
related to adverse market and economic conditions, including continued
or more severe adverse fluctuations in foreign exchange rates and/or
weakening economic conditions in the markets where Cerus sells its
products; Cerus’ reliance on third parties to market, sell, distribute
and maintain its products; Cerus’ ability to maintain an effective
manufacturing supply chain, including the ability of its manufacturers
to comply with extensive FDA and foreign regulatory agency requirements;
the impact of legislative or regulatory healthcare reforms that may make
it more difficult and costly for Cerus to produce, market and distribute
its products; risks related to future opportunities and plans, including
the uncertainty of future revenues and other financial performance and
results, as well as other risks detailed in Cerus’ filings with the
Securities and Exchange Commission, including Cerus’ Annual Report on
Form 10-K for the year ended December 31, 2018, filed with the SEC on
February 27, 2019. Cerus disclaims any obligation or undertaking to
update or revise any forward-looking statements contained in this press
release.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190401005801/en/
Tim Lee – Investor Relations Director
Cerus Corporation
925-288-6137
Source: Cerus Corporation