Note Payable (MidCap Loan)

3 Months Ended

Mar. 31, 2017

10.

Note payable (MidCap loan):

On May 29, 2015, the Company entered into a $30 million secured loan facility (the “Loan”) with MidCap Financial Trust, as agent and lender (“MidCap”), pursuant to the terms and conditions of that certain Amended and Restated Credit and Security Agreement, dated as of May 29, 2015 (the “Credit Agreement”), between the Company and MidCap.

On February 21, 2017, the Company entered into a term loan agreement (the “Term Loan Agreement”) with CRG Servicing LLC (“CRG”), as administrative agent and collateral agent, and the lenders named in the Term Loan Agreement (the “Lenders”). The Company utilized approximately $29.4 million of the initial loan proceeds to repay all of the amounts owed by the Company under its existing Amended and Restated Loan and Security Agreement, dated May 29, 2015, with MidCap (the “Prior Agreement”). Upon the repayment of all amounts owed by the Company under the Prior Agreement, all commitments under the Prior Agreement have been terminated and all security interests granted by the Company and its subsidiary guarantors (the “Subsidiary Guarantors”) under the Prior Agreement have been released (see note 11). The warrants issued to MidCap in May 2016 related to the extension of the interest only period were not terminated and are outstanding as of March 31, 2017. During the three months ended March 31, 2017, $0.7 million of deferred loan costs were expensed and recorded as interest expense in the accompanying condensed consolidated statement of operations.