Ocular Therapeutix (NSDQ:OCUL) said today that it closed a refinancing of its existing debt by landing a $25 million term loan with MidCap Financial and Silicon Valley Bank.
The 5-year term loan facility expanded the company’s prior $18 million credit facility to $25 million. The proceeds from the loan were used to repay the $12.3 million remaining balance under the prior facility and give an additional $12 million in new funds.
“We are pleased with the expansion and extension of our credit facility which not only strengthens our balance sheet with net new funds of $12.0 million but also improves near term cash flow through interest-only payments for the next 24 months, collectively extending the Company’s cash runway, based on current plans and forecasted expenses, into the third quarter of 2019,” CFO Donald Notman said in prepared remarks.
Earlier this month, the FDA approved Ocular Therapeutix’s resubmitted application for Dextenza, an ocular insert designed to release dexamethasone to relieve pain following ophthalmic surgery.
The company’s device is designed to deliver drugs for up to 30 days following treatment in a physician’s office. Ocular Therapeutix is positioning its product as a way to eliminate the current standard of care for post-surgical pain – topical steroid eye drops.
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