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GenMark Enters Into $65M Loan and Security Agreement

NEW YORK (GenomeWeb) – GenMark Diagnostics said on Wednesday that it entered into a loan and security agreement on Feb. 1 through which Solar Capital is providing it with up to $65 million in a series of term loans.

In a filing with the US Securities and Exchange Commission, GenMark said that under the terms of the agreement, it had an option to borrow $50 million on Feb. 1 as part of a Tranche 1 Loan. It can borrow an additional $15 million no later than Dec. 31, 2019, should GenMark achieve a designated threshold amount of product revenues on a trailing six-month basis.

In the SEC filing, GenMark said that on Feb. 1, it used about $38.8 million of the Tranche 1 Loan proceeds to repay all outstanding principal, interest, related fees, and other obligations under its existing loan and security agreement with Solar Senior Capital, dated Jan. 12, 2015.

Under the agreement, the term loans will accrue interest at a floating per annum rate in effect from time-to-time equal to the greater of 2.51 percent or the one-month LIBOR rate in effect as of the applicable payment date, plus 5.90 percent per annum.