NEW YORK--(BUSINESS WIRE)--
Retrophin, Inc. (NASDAQ:RTRX) today announced that it has signed a
binding commitment on a $40 million senior secured term loan facility,
provided by Athyrium Capital Management. The term loan will mature in
2018, have an interest rate of LIBOR plus 10% (with a LIBOR floor of
1%), and be subject to customary closing conditions. The lender will
receive warrants to purchase an aggregate of 300,000 shares of common
stock for a period of five years at an exercise price of $13.93 per
share.
The Company has also entered into definitive purchase agreements with a
group of institutional investors for the purchase and sale of $40
million of 4.5% Senior Convertible Notes due 2019. The Notes are
convertible into shares of the Company's common stock at an initial
conversion rate of 57.43 shares of common stock per $1,000 principal
amount of Notes, equivalent to an initial conversion price of
approximately $17.41 per share of common stock, subject to adjustment in
certain circumstances. The Notes will mature on May 30, 2019.
"We were pleased to obtain non-dilutive financing," said Martin Shkreli,
Founder and CEO of Retrophin. "After a thorough process, we chose to
partner with Athyrium, not only because they offered the best terms, but
because we were most comfortable with their integrity and
professionalism. With this financing, we are well-positioned to move
forward on several exciting potential acquisitions identified by our
business development team."
Barclays served as sole lead placement agent to Retrophin in connection
with the offer of Senior Convertible Notes and served as sole placement
agent and arranger in connection with the senior secured term loan
facility. Nomura served as co-placement agent in connection with the
Senior Convertible Notes.
About Athyrium Capital Management
Athyrium Capital Management, LLC is an asset management company formed
in 2008 to focus on investment opportunities in the global healthcare
sector. Athyrium invests across all healthcare verticals including
biopharma, medical devices and products, and healthcare services and
partners with management teams to implement creative financing solutions
to companies' capital needs.
About Retrophin
Retrophin is a pharmaceutical company focused on the development,
acquisition and commercialization of drugs for the treatment of serious,
catastrophic or rare diseases for which there are currently no viable
options for patients. The Company's marketed products include Chenodal®,
Thiola® and Vecamyl®, and its pipeline includes compounds for several
catastrophic diseases, including focal segmental glomerulosclerosis
(FSGS), pantothenate kinase-associated neurodegeneration (PKAN),
schizophrenia, autism, infantile spasms, nephrotic syndrome and others.
Retrophin intends to reintroduce Syntocinon Nasal Spray in the U.S. to
assist initial postpartum milk ejection. For additional information,
please visit www.retrophin.com.
Forward-Looking Statements
This press release contains "forward-looking statements" as that term is
defined in the Private Securities Litigation Reform Act of 1995,
regarding the research, development and commercialization of
pharmaceutical products. Without limiting the foregoing, these
statements are often identified by the words "may", "might", "believes",
"thinks", "anticipates", "plans", "expects", "intends" or similar
expressions. In addition, expressions of our strategies, intentions or
plans are also forward-looking statements. Such forward-looking
statements are based on current expectations and involve inherent risks
and uncertainties, including factors that could delay, divert or change
any of them, and could cause actual outcomes and results to differ
materially from current expectations. No forward-looking statement can
be guaranteed. Forward-looking statements in the press release should be
evaluated together with the many uncertainties that affect the Company's
business. You are cautioned not to place undue reliance on these
forward-looking statements as there are important factors that could
cause actual results to differ materially from those in forward-looking
statements, many of which are beyond our control. The Company undertakes
no obligation to publicly update any forward-looking statement, whether
as a result of new information, future events, or otherwise. Investors
are referred to the full discussion of risks and uncertainties as
included in the Company's filings with the Securities and Exchange
Commission.
Retrophin, Inc.
Marc Panoff, 646-564-3671
CFO
marc@retrophin.com
Source: Retrophin, Inc.
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