Alimera Sciences, Inc., a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic pharmaceuticals, announced today that its United Kingdom subsidiary, Alimera Sciences Limited (Limited), has entered into a Loan and Security Agreement with Hercules Technology Growth Capital, Inc. for a term loan in the principal amount of up to $35 million. Under the agreement, Hercules is advancing $10 million to Limited and will advance the remaining $25 million in the event the U.S. Food and Drug Administration (FDA) approves ILUVIEN® on or before October 31, 2014 and certain other conditions are satisfied.
The proceeds of the initial funding of $10 million under the term loan will be used to pay off an existing term loan payable to Silicon Valley Bank (SVB) and to provide additional working capital for general corporate purposes. The $25 million advance will be used to fund a $25 million milestone payment obligation that will be owed by Alimera upon FDA approval of ILUVIEN. In connection with the closing of the Hercules debt facility, Limited also terminated a $15 million working capital line of credit with SVB that had not been utilized.
“This debt facility strengthens our financial position for the commercialization of ILUVIEN in the United Kingdom, Germany and France, and for possible expansion elsewhere in Europe,” said Dan Myers, Alimera’s president and chief executive officer. “Further, it is expected to provide the funding necessary to fulfill our milestone obligation if ILUVIEN receives FDA approval on or before October 31, 2014, and is intended to mitigate the need to seek additional financing for this purpose.”