Life sciences debt investor BioPharma Credit entered into a senior secured term loan agreement for up to US$80m with BioDelivery Sciences and also announced it had acquired 5m shares in the latter for $25m. 'BioDelivery utilizes its novel and proprietary BioErodible MucoAdhesive technology, to develop and commercialize new applications of proven therapies aimed at addressing important unmet medical needs,' the company said. The first tranche of the loan for US$60m was funded yesterday and an additional tranche of US$20m was available for draw by May 2020 at BioDelivery's discretion the company said. The loan would mature in May 2025 and beared interest at LIBOR plus 7.5%, along with 2% additional consideration. The loan was secured by all of BioDelivery's assets. BioPharma Credit also acquired 5m shares in BioDelivery (BDSI) at US$5.00 each for a total cost of US$25m in a public offering that priced on 11 April 2019. BDSI had guided to 2019 revenue of US$92m to US$100m, up from US$51.4m in 2018. As of 31 March 2019, BDSI had US$41.3m of cash and liquid investments and on 11 April 2019 raised US$50m of additional cash via a sale of equity. Proceeds from this financing, along with available cash on hand, were used to repay and retire the company's existing term loan with CRG Servicing which had an outstanding balance of US$61.8m and a maturity date of December 2022.
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