Annual report pursuant to Section 13 and 15(d)

Facility Loans

v3.10.0.1
Facility Loans
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Facility Loans

6. Facility Loans

On August 7, 2015, the Company entered into a Loan and Security Agreement (the 2015 Term Loan Facility) pursuant to which it refinanced its existing term loan facility for an aggregate amount of up to $15.0 million. The first $10.0 million tranche of this new loan facility was made available to the Company immediately upon the closing and was used in part to retire all $4.1 million of the Company’s existing debt outstanding under the prior term loan facility, and to settle accrued interest and closing costs with the lenders. The remaining $5.0 million, referred to as the second tranche, was made available to the Company until March 31, 2016, for draw down upon the achievement of a specified milestone but expired as the second draw milestone was not achieved.

The loan bore interest at 8.77%. The Company was required to make 12 monthly interest only payments after the funding date followed by a repayment schedule equal to 36 equal monthly payments of interest and principal. Upon maturity, the remaining balance of the first tranche and a final payment equal to 6.50% of the original principal amount advanced of the applicable tranche were payable.

At the closing, the Company also agreed to pay a facility fee of 1.00% of the 2015 Term Loan Facility commitment. In addition, the Company issued warrants exercisable for a total of 114,436 shares of its common stock to the lenders at an exercise price of $2.84 per share, and with a term of ten years. Upon issuance, the fair value of a warrant liability of $0.3 million was recorded in the accompanying consolidated balance sheet, to be revalued at each balance sheet date until the warrants were exercised or expire.

On June 4, 2018, the Company repaid in full the outstanding balance of the 2015 Term Loan Facility of $4.2 million plus a final fee of $0.7 million and a prepayment penalty of $0.1 million. In conjunction with this prepayment, the Company recorded a $0.4 million loss on early of extinguishment of this debt. As of December 31, 2018, the Company had no further obligations under the 2015 Term Loan Facility and all warrants previously issued in connection with it had been exercised.

The term loan facility, debt discounts and final payment balances as of December 31, 2018 and 2017 are as follows (in thousands):

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Principal payments due under the loan facility

 

$

-

 

 

$

5,877

 

Less: unamortized debt discount

 

 

-

 

 

 

(296

)

Plus: accreted value of final payment

 

 

-

 

 

 

517

 

Term loan facility, net

 

$

-

 

 

$

6,098