Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events

Subsequent Events

13. Subsequent Events

Effective July 5, 2017, the Company’s existing credit line with UBS was amended to modify the originally stated interest from 30-day LIBOR plus 0.65% to 30-day LIBOR plus 1.10%. This amendment was accounted for as a modification of the original arrangement. In return, the Company’s investments required to be collateralized were reduced. 

On August 8, 2017, the Company completed a debt financing with an institutional investor pursuant to a senior secured term loan facility (the “2017 Term Loan”). The 2017 Term Loan has a maximum borrowing capacity of $100.0 million, with $75.0 million made available for use on the closing date of August 8, 2017. The remaining $25.0 million is available for use at the Company’s option at any time through December 31, 2018, subject to a minimum net revenue condition. The 2017 Term Loan will be used for general corporate purposes and to fund and support the Company’s business and operations. Interest will accrue on the outstanding balance of the loan at a rate equal to the sum of (i) 8.75% plus (ii) the higher of 1.00% or LIBOR. The 2017 Term Loan has an eighty-four month term and will mature in August 2024. The Company will only be required to make interest payments over the term of the loan, with repayment of the full outstanding balance on the maturity date. The Company’s obligations under the 2017 Term Loan are secured by substantially all of its assets, including its intellectual property, subject to certain customary exceptions. Shortly following the closing of the 2017 Term Loan, the Company will issue this institutional investor 300,000 shares of its common stock as a fee in consideration of the investor’s funding commitment.