Alimera Sciences has entered into a $40 million term loan agreement with Solar Capital Ltd., according to a company press release.
Alimera plans to use the loan to pay off an existing $35 million term loan and to provide additional working capital.
Interest on outstanding borrowing on the loan is payable at 1-month LIBOR plus 7.65% per year, while the loan’s current interest rate is 9.2%, the release said.
In addition, Alimera paid Solar Capital a $400,000 fee at closing and is obligated to pay a $1.8 million fee upon repayment of the loan.
“Working with Solar Capital provides us with a long-term partner and a stable debt facility over the next few years,” Alimera CEO Dan Myers said in the release. “Further, eliminating the restrictive liquidity covenants in our existing loan will unlock more working capital to invest in our business.”