Credit Facility

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Credit Facility

Credit Facility

The Company has a total of $200 million available through the credit facility with certain entities affiliated with Deerfield Management Company L.P. (“Deerfield”) pursuant to which $100 million of delayed draw term loan commitments were provided by Deerfield in July 2018 (the “July 2018 tranche”) and $100 million of delayed draw term loan commitments were provided by Deerfield in May 2019 (the “May 2019 tranche”). The July 2018 tranche includes fees upon drawdown of 1.75% of amounts drawn, an 8.625% annual interest rate on drawn amounts, and annual fees on undrawn amounts of 1.5%. The May 2019 tranche includes fees upon drawdown of 2.0% of amounts drawn, an annual interest rate of LIBOR (subject to a floor of 2%) plus 7.2%, up to a maximum of 13.0%, on drawn amounts and annual fees on undrawn amounts of 2.0%.There is also an exit fee of $1.5 million payable upon termination of the July 2018 tranche and an exit fee of $5.3 million (or $2.6 million if the tranche is undrawn) payable upon termination of the May 2019 tranche (in each case, whether terminated at maturity or otherwise). The allowable draw period under the credit facility for both the July 2018 tranche and the May 2019 tranche ends on July 23, 2020. Fees on undrawn amounts are not payable until July 2020, and no principal payments will be due on drawn amounts, if any, until July 2020. The credit facility matures in July 2024 in respect of any drawn amounts. The credit facility includes affirmative and negative covenants and prepayment terms. No funds have been drawn under the July 2018 tranche or the May 2019 tranche as of June 30, 2019.

Interest expense was $1.6 million and $2.4 million for the three and six months ended June 30, 2019, respectively, and included issuance costs and fees related to the credit facility. Interest expense was $0.5 million and $1.0 million for the three and six months ended June 30, 2018, respectively, and included amortization of debt discount and issuance costs related to the 2014 Convertible Notes.