The move will allow Navidea to refinance all of its outstanding CRG debt with a facility that will allow for “substantially more financial flexibility,” the Dublin, Ohio-based company said.
“While we believe we have no obligation to refinance the existing senior secured debt facility, we are pleased that investors are demonstrating support for the significant strides Navidea has taken to improve sales, right size expenses and develop an exciting portfolio of diagnostic products and therapeutic products. The investor appreciates how far the technology has advanced since this facility was put in place just over a year ago and has tailored their facility to enable Navidea much greater operational flexibility than under the current facility. Based on discussions with the investor we believe they value the potential of our portfolio and are excited and supportive of our efforts in developing product candidates in both the immunotherapy and immunodiagnostic space as evidenced by progress in both rheumatoid arthritis and cardiovascular indications,” Navidea chair Dr. Michael Goldberg said in a press release.
The new credit facility will have a similar interest rate and duration as the company’s current facility, without maintenance covenants. Navidea said the institutional investor involved in the facility claims it can have it closed and funded within 120 days.
Navidea said it is continuing ongoing dialogue with several banks to continue to seek out every avenue available to “streamline its capital structure.”
Last month, Navidea said it is beginning the clinical trial development process as it seeks an indication for its Lymphoseek injection for treating rheumatoid arthritis and other disease states.
The decision came after a recent meeting with the FDA, the company said.
The company said it conducted a series of meetings with the FDA as it seeks to extend the indications for Lymphoseek to include IV administration, and said it has initiated clinical development for the process.