Alimera Sciences, Inc. (Nasdaq:ALIM) ("Alimera") announced today that it has obtained a $32.5 million senior secured credit facility to help fund its working capital requirements. The credit facility consists of a $20 million revolving line of credit provided by Silicon Valley Bank and a $12.5 million term loan provided by MidCap Financial, LLC and Silicon Valley Bank.
The lenders have advanced $6.25 million under the term loan and may advance the remaining $6.25 million following FDA approval of Iluvien, but no later than July 31, 2011. The revolving line of credit may be drawn by Alimera against accounts receivable subsequent to the launch of Iluvien.
The interest rate on amounts advanced under the term loan on or prior to February 28, 2011 will be 11.5%, and 12.0% on amounts advanced subsequent to February 28, 2011. The revolving line of credit will bear interest at Silicon Valley Bank's prime rate plus 2.50% with a floor of 6.50%.
In connection with the term loan, Alimera issued the lenders ten-year warrants to purchase an aggregate of up to 79,546 shares of common stock at an exercise price of $11.00 per share, Alimera's initial public offering price.
"We are very pleased to have secured this financing on attractive terms to supplement the proceeds from our initial public offering in April of this year," said Rick Eiswirth, Chief Operating Officer and Chief Financial Officer of Alimera. "This agreement provides us with additional financial cushion as we prepare to commercialize our lead product candidate, Iluvien®, which was granted Priority Review status by the U.S. Food and Drug Administration on August 30, 2010."
"We are excited to partner with Alimera and provide them with the financing they need to grow and bring to market their solution for treating one of the leading causes of blindness in the world," said Scott McCarty, relationship manager at Silicon Valley Bank. "Silicon Valley Bank is committed to providing life science companies at all stages of growth with the right financial products and services for their specific needs. We look forward to building a longstanding relationship with the Alimera team."
"MidCap Financial is truly pleased to have Alimera as a portfolio company," said Chris York, Managing Director, MidCap Financial, LLC. "By working closely with Alimera and Silicon Valley Bank, we were able to develop a financing that supports the Company as it prepares to commercialize Iluvien."