Aratana Therapeutics Announces a $40 Million Credit Facility
KANSAS CITY, Kan., Oct. 16, 2015 /PRNewswire/ -- Aratana Therapeutics, Inc. (NASDAQ: PETX), a pet therapeutics company focused on the licensing, development and commercialization of innovative biopharmaceutical products for companion animals, today announced a $40 million senior secured credit facility with Pacific Western Bank, as agent and lender, and Oxford Finance LLC, as lender. The facility refinances the $15 million loan facility previously provided to the Company by Pacific Western Bank (as successor-in-interest to Square 1 Bank).
The new facility consists of two types of loans, a $35 million term loan and a $5 million revolving loan. Both the term loan and the revolving loan are expected to be fully funded on October 16, 2015. The term loan will be interest-only for a period of 18 months, followed by an amortization period of principal payments, plus interest, paid over the subsequent 30 months (or 18 months if the interest-only period is extended as discussed below). The parties have the option, subject to certain conditions, to extend the interest-only period for the term loan by 12 additional months. The revolving loan, which may be repaid and re-borrowed at any time, is interest-only until its maturity on October 16, 2017, when any outstanding principal and interest on the revolving line is due. The loan facility is subject to certain financial and negative covenants and is secured by substantially all of the Company's assets other than its intellectual property, in each case as more fully described in the Company's filings with the Securities and Exchange Commission.
About Aratana Therapeutics
Aratana Therapeutics is a pet therapeutics company focused on licensing, developing and commercializing innovative biopharmaceutical products for companion animals. Aratana believes that it can leverage the investment in the human biopharmaceutical industry to bring therapeutics to pets in a capital and time efficient manner. The company's pipeline includes therapeutic candidates targeting pain, inappetence, cancer, viral diseases, allergy and other serious medical conditions. Aratana believes the development and commercialization of these therapeutics will permit veterinarians and pet owners to manage pets' medical needs safely and effectively, resulting in longer and improved quality of life for pets. For more information, please visit www.aratana.com.
SOURCE Aratana Therapeutics, Inc.