Note 8 - Loans Payable

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

8

. Loans payable

On

October 4, 2016,

the Company entered into an agreement with MidCap Financial Trust, or the MidCap Agreement, that provided it with

$40

million in debt financing, comprised of both a term loan and a revolving line of credit. The MidCap Agreement provided the Company with a term loan of

$30

million, which matured

five

years from closing. The term loan accrued interest at a rate of LIBOR plus

7.60%

with interest only payments for the

first

24

months, with the ability to extend to

48

months subject to certain conditions, before the loan began to amortize. The MidCap Agreement also provided the Company with a revolving line of credit of up to

$10

million, which matured

five

years from closing. The revolving line of credit accrued interest at a rate of LIBOR plus

4.45%.

The Company was also required to pay the lenders an unused line fee equal to

0.50%

per annum of the average unused portion of the revolving line of credit. Based on certain conditions, both the term loan and revolving line of credit could have been increased by an additional

$10

million for a total of

$60

million.

In connection with the sale of the U.S. Laboratory Services Business to Quest pursuant to a Limited Liability Company Interest Purchase Agreement on

November 6, 2018,

approximately

$32.3

million of the gross proceeds received pursuant to the Transaction was paid directly to MidCap to repay the outstanding indebtedness under the MidCap Agreement, which included prepayment and exit fees of approximately

$2.3

million. In connection with the Company’s repayment of the outstanding indebtedness under the MidCap Agreement, the Term Loan and the Revolving Loan, and all related agreements thereunder, were terminated and all borrowings outstanding thereunder were repaid in full. The repayment resulted in a loss on extinguishment of debt of

$2.1

million, which represents the cash paid to settle the debt in excess of debt related balances at the time of settlement. As of

March 31, 2018,

the Company had a balance of the secured term loan due to MidCap of

$30

million, which is recorded in the accompanying consolidated balance sheet at that date, net of unamortized discount and debt issuance costs. The Company never borrowed under the revolving line of credit.