Array BioPharma Inc has received its second draw of $40 million from Deerfield Management, a leading healthcare investment organization and one of Array's largest shareholders. Deerfield committed $80 million to Array in May 2008 and provided the first $40 million draw to Array in June 2008. Together with existing capital, these funds are being use to advance Array's seven wholly-owned small molecule drug programmes in development.
The $80 million interest-bearing loan is due in April 2014. Principal and unpaid interest may be prepaid in whole or in part at any time. Prepayment of principal and accrued compound interest may be made at the company's option with shares of common stock, subject to certain restrictions, or in cash. The company is making quarterly interest payments at a rate of 2 per cent per annum, and will pay interest accruing at 6.5 per cent per annum, compounded quarterly, at maturity. Deerfield received a 2.5 per cent transaction fee and was issued warrants, with a six-year term, to purchase six million shares of Array's common stock at an exercise price of $7.54 per share.
Array BioPharma Inc is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer, inflammatory and metabolic diseases