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ISTA Pharmaceuticals receives $65 Million funding commitment
By siliconindia
Irvine: ISTA Pharmaceuticals, has announced it has entered into an agreement with its long-term shareholders, Deerfield Management, Sprout and Sanderling Ventures to provide ISTA with up to $65 million in financing through a flexible credit facility. In conjunction with this committed funding, ISTA has drawn $40 million and called its convertible debt for par, plus interest accrued over the past quarter. ISTA will be able to draw up to an additional $25 million any time over the next 12 months, at management's discretion in terms of timing and amount drawn.
"Deerfield, Sanderling, and Sprout are health care investors and also three of ISTA's largest investors, and we appreciate their continued funding of ISTA's growth. This $65 million facility is the culmination of five months of assessing our business and strategic options," stated Vicente Anido, President and Chief Executive Officer of ISTA Pharmaceuticals. "Our goal was to ensure we could flexibly fund ISTA's future growth while minimizing dilution impact on our shareholders. We fully believe these corporate finance activities have the potential to give our shareholders the best potential return on their investment."
Concurrently, ISTA announced it has concluded its previously initiated review of its strategic alternatives. Finally, ISTA is continuing its relationship with Silicon Valley Bank and has a $10 million revolving credit facility available to fund its working capital needs.
Under the terms of the agreement, Deerfield Management, Sprout and Sanderling Ventures have funded ISTA with $40 million and committed up to $25 million in additional funding to be drawn by ISTA at its discretion for up to one year. Any amounts drawn accrue interest until maturity at a rate of 6.5 percent per annum which is payable on a quarterly basis. Any funds drawn are repayable in one-third increments in 2011, 2012, and 2013.
