Relypsa Secures Loan Facility of Up to $35 Million
REDWOOD CITY, Calif., June 2, 2014 (GLOBE NEWSWIRE) — Relypsa, Inc. (Nasdaq:RLYP), a biopharmaceutical company, today announced it has secured a loan facility of up to $35 million with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”).
Under the terms of the agreement, the company immediately drew $15 million upon closing on May 30, 2014, of which $11 million was used to repay in full the company’s existing debt with Oxford and SVB, leaving the remaining $4 million available for working capital purposes. Payments on the new $15 million will be interest only through April 2015. Upon acceptance of the company’s New Drug Application for patiromer by the U.S. Food and Drug Administration, the interest only payment period will be extended to December 2015 and the company may, at its option, draw an additional $20 million during the second half of 2015.
“We are pleased to expand our relationship with Oxford Finance and Silicon Valley Bank,” said Kristine Ball, chief financial officer of Relypsa. “The new facility provides for an immediate reduction in debt service costs and allows for more non-dilutive financial flexibility as we pursue approval of our lead product candidate, patiromer.”