NEW YORK (GenomeWeb) – Exact Sciences said in a document filed with the US Securities and Exchange Commission today that it has inked revolving and non-revolving loan agreements with MB Financial Bank.
The revolving loan agreement provides Exact Sciences with a 24-month secured revolving credit facility of up to $15.0 million with a Dec. 10, 2019 maturity date.
Amounts borrowed under the revolving loan agreement accrue interest at one of three yearly rates elected by Exact Sciences. They are the sum of the one-month Libor rate plus 2 percent; the sum of the three-month Libor rate plus 2 percent; and the MB Bank Reference Rate minus .5 percent.
The firm noted that it anticipates using the loan to fund facility renovation, development and construction projects, and other general working-capital activities.
The non-revolving construction loan agreement inked by Exact Sciences subsidiary GC Growth with MB Bank provides up to $25.6 million with a maturity date of Dec. 10, 2022. The agreement bears interest at a rate equal to the sum of the one-month Libor rate plus 2.25 percent.
Exact said in the SEC document that it expects to use that loan to finance the construction of a clinical laboratory and related facilities, and to conduct additional development of a 46-acre campus in Madison, Wisconsin. As a condition of the agreement, Exact is required to invest at least $16.4 million of its cash in the construction project.