ATLANTA, Nov. 3, 2015 /PRNewswire/ -- Alimera
Sciences, Inc. (NASDAQ: ALIM) (Alimera), a pharmaceutical company
that specializes in the research, development and commercialization
of prescription ophthalmic pharmaceuticals, today announced that
its United Kingdom subsidiary,
Alimera Sciences Limited (Limited), has amended its $35 million term loan agreement (the Amendment)
with Hercules Technology Growth Capital, Inc. (NYSE: HTGC)
(Hercules).
Under the terms of the Amendment, the interest-only payment
period has been extended by 18 months through May 2017, provided that Alimera meets certain
revenue and liquidity requirements. As a result of this extension,
Alimera will reduce its debt service requirements between
December 2015 and May 2017 by approximately $18 million.
Amortization of the term loan is expected to now start in
June 2017 with 11 equal monthly
payments of principal and interest, based upon a 30-month
amortization schedule, followed by a final payment of all remaining
outstanding interest and principal in May 2018. In connection
with the Amendment, Limited has agreed to make an additional final
payment equal to 3% of the term loan in May
2018.
Interest on outstanding borrowings under the term loan is
payable at the greater of 10.90%, or 7.65% plus the prime rate per
annum.
In connection with the Amendment, Alimera amended the common
stock warrant previously issued to Hercules in connection with the
original term loan agreement with Hercules, by increasing the
aggregate number of shares that may be purchased by Hercules to
660,337 shares, and reducing the exercise price
to $2.65 per share.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. (NYSE: HTGC)
("Hercules") is the leading specialty finance company focused on
providing senior secured venture growth loans to high-growth,
innovative venture capital-backed companies in the technology,
biotechnology, life sciences, healthcare, and energy &
renewable technology industries. Since inception (December 2003), Hercules has committed more
than $5.5 billion to over 325 companies and is a lender
of choice for entrepreneurs and venture capital firms seeking
growth capital financing. Companies interested in learning more
about financing opportunities should contact info@htgc.com, or
call 650-289-3060.
About Alimera Sciences, Inc.
Alimera Sciences, Inc., headquartered in Alpharetta,
Georgia, is a pharmaceutical
company that specializes in the research, development and
commercialization of prescription ophthalmic pharmaceuticals.
Alimera's European operations are conducted
from London by its subsidiary, Alimera Sciences
Limited. For more information, please visit
www.alimerasciences.com.
Forward Looking Statements
This press release contains "forward-looking statements," within
the meaning of the Private Securities Litigation Reform Act of
1995, regarding, among other things, the amortization schedule of
the term loan and the reduction of Alimera's debt service
obligations and requirements. Such forward-looking statements are
based on current expectations and involve inherent risks and
uncertainties, including factors that could delay, divert or change
any of them, and could cause actual results to differ materially
from those projected in its forward-looking statements. Meaningful
factors which could cause actual results to differ include, but are
not limited to, Alimera's failure to meet the revenue and liquidity
covenants set forth in the amended term loan agreement, as well as
other factors discussed in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of Alimera's Annual Report on Form 10-K for
the year ended December 31, 2014 and the quarter ended
June 30, 2015, which are on file with
the Securities and Exchange Commission (SEC) and
available on the SEC's website at www.sec.gov. In
addition to the risks described above and in Alimera's Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings with the SEC, other
unknown or unpredictable factors also could affect Alimera's
results. Additional factors may be set forth in Alimera's quarterly
report for the quarter ended September 30,
2015 to be filed with the SEC in the fourth quarter of 2015.
There can be no assurance that the actual results or developments
anticipated by Alimera will be realized or, even if substantially
realized, that they will have the expected consequences to, or
effects on, Alimera. Therefore, no assurance can be given that the
outcomes stated in such forward-looking statements and estimates
will be achieved.
All forward-looking statements contained in this press release
are expressly qualified by the cautionary statements contained or
referred to herein. Alimera cautions investors not to rely too
heavily on the forward-looking statements Alimera makes or that are
made on its behalf. These forward-looking statements speak only as
of the date of this press release (unless another date is
indicated). Alimera undertakes no obligation, and specifically
declines any obligation, to publicly update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Alimera Sciences, Inc.