Globe Newswire 14-Jun-2018 4:15 PM
IRVING, Texas, June 14, 2018 (GLOBE NEWSWIRE) -- Reata Pharmaceuticals, Inc. (NASDAQ:RETA) ("Reata" or "the Company"), a clinical-stage biopharmaceutical company, today announced that it entered into an amended and restated loan and security agreement with Oxford Finance LLC and Silicon Valley Bank, which increased the Company's term loan facility from $45 million to $125 million. Proceeds from the loan will be utilized primarily to support Reata's multiple Phase 2 and 3 clinical trial programs for bardoxolone methyl and omaveloxolone.
The loan proceeds are available to Reata in two tranches. The first $80 million tranche, which was funded today, refinanced the $20 million principal amount that was outstanding and provided $60 million of additional cash to the Company, prior to the payment of accrued interest, fees, and expenses incurred in connection with the transaction. The additional $45 million tranche will be available to Reata until December 31, 2019, after Reata has positive topline registrational data in either of its ongoing registrational clinical trials of (a) bardoxolone methyl in chronic kidney disease caused by Alport syndrome or (b) omaveloxolone in Friedreich's ataxia. The loan agreement provides for interest-only payments during the first 24 months of the facility or the first 36 months of the facility if the $45 million tranche is drawn. The loan bears interest at a floating rate equal to the sum of 7.79% plus the greater of 1.91% or the 30-day U.S. Dollar LIBOR rate (which shall not exceed 4.50%), but will not be set below 9.70% or above 12.29%. The loan is also subject to a 6.5% of tranche A and 4.0% of tranche B final payment when principal is paid in full at maturity on June 1, 2023, upon acceleration, or upon prepayment in full. Each tranche of the loan is prepayable in full, including the final payment and certain prepayment fees, any time at the option of Reata. The loan is senior debt and is secured by substantially all of Reata's assets, including its owned intellectual property. The loan agreement contains customary covenants, but does not contain any financial covenants, other than the requirement that the Company and its guarantors (if any) collectively must maintain at least $15 million of cash and cash equivalents.
About Reata Pharmaceuticals, Inc.
Reata is a clinical-stage biopharmaceutical company that develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways involved in the regulation of cellular metabolism and inflammation. Reata's two most advanced clinical candidates, bardoxolone methyl and omaveloxolone, target the important transcription factor Nrf2 that promotes the resolution of inflammation by restoring mitochondrial function, reducing oxidative stress, and inhibiting pro-inflammatory signaling.
This press release includes certain disclosures that contain "forward-looking statements," including, without limitation, statements regarding the success, cost and timing of our product development activities and clinical trials, our plans to research, develop and commercialize our product candidates, and our ability to obtain and retain regulatory approval of our product candidates. You can identify forward-looking statements because they contain words such as "believes," "will," "may," "aims," "plans," and "expects." Forward-looking statements are based on Reata's current expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, (i) the timing, costs, conduct, and outcome of our clinical trials and future preclinical studies and clinical trials, including the timing of the initiation and availability of data from such trials; (ii) the timing and likelihood of regulatory filings and approvals for our product candidates; (iii) the potential market size and the size of the patient populations for our product candidates, if approved for commercial use, and the market opportunities for our product candidates; and (iv) other factors set forth in Reata's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, under the caption "Risk Factors." The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Vice President, Strategy
Matt Middleman, M.D.
LifeSci Public Relations
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