NEW YORK (GenomeWeb) – In a filing with the US Securities and Exchange Commission today, CareDx reported that it has entered into a $35 million term loan agreement with Perceptive Credit Holdings.
The loan will be provided in two tranches, the SEC filing noted. The first tranche of either $15 million or $25 million of debt will be available upon the execution of the definitive loan documentation for the facility. The second tranche of up to $10 million, meanwhile, will be available on the closing date or within one year after the closing date, subject to CareDx achieving certain product revenue targets before the one year anniversary of the date of the first tranche loan.
Further, CareDx said, the loan will be secured by substantially all of the company’s assets and a pledge of 65 percent of the equity interests of CareDx International (formerly Allenex AB, which CareDx acquired in 2016). In the event of a default, a default interest rate of an additional 3 percent may be applied to the outstanding loan balances, and Perceptive may declare all outstanding obligations immediately due and payable.
The company said it plans to use the proceeds from the loan for general corporate purposes and to repay outstanding indebtedness with JGB Collateral and certain of its affiliates, FastPartner AB, Mohammed Al Amoudi, and Danske Bank.
CareDx also said that it notified JGB of its intent to prepay on April 13 in full the outstanding principal and interest under the 9.5 percent Original Issue Discount Senior Secured Debentures due February 29, 2020, issued by the company to JGB on March 15, 2017.