DURECT Secures $20M Debt Financing
DURECT Corporation (Nasdaq: DRRX) today announced that it had entered into a Loan and Security Agreement (the "Loan Agreement") with Oxford Finance LLC, pursuant to which Oxford agreed to make a term loan to the Company in the principal amount of $20 million. The loan has a fixed interest rate of 7.95% per annum with interest only payments for the first 18 months and repayment of all principal and interest by July 1, 2018. In addition, the Company paid a $150,000 facility fee at closing and, at maturity or earlier termination, the Company must pay Oxford an additional one-time payment equal to 8% of the initial principal amount of the term loan. The Company may use the proceeds of the Loan Agreement for general working capital and to fund its business requirements.
"We're pleased to secure this financing on favorable terms which gives us more flexibility to advance our pipeline of products in development," stated James E. Brown, President and CEO of DURECT Corporation.
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