MENLO PARK, Calif., Feb. 5, 2013 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (Nasdaq:PACB), provider of the PacBio ® RS High Resolution Genetic Analyzer, today announced that it has entered into an agreement with entities affiliated with Deerfield Management Company, L.P. (Deerfield), a leading healthcare investment organization and significant Pacific Biosciences stockholder, pursuant to which Deerfield provided Pacific Biosciences with $20.5 million in debt financing.
"We are pleased that Deerfield, one of our largest shareholders, appreciates the potential in our business and is continuing to support us through this funding commitment," stated Mike Hunkapiller, Chairman and CEO of Pacific Biosciences. "We believe this financing puts us in a stronger position to continue to drive the adoption of our Single Molecule, Real-Time (SMRT ®) Sequencing technology and products."
Under the terms of the agreement, Pacific Biosciences issued senior secured promissory notes in the aggregate principal amount of $20.5 million. The notes, which have a maximum seven year term, will accrue interest at a rate of 8.75% per annum, payable quarterly in arrears. In addition, Pacific Biosciences issued Deerfield seven year warrants to purchase 5.5 million shares of its common stock with an exercise price of $2.63 per share. Deerfield received a transaction fee of $0.5 million at the time of funding. For additional information on the terms of these agreements, please refer to the current report on Form 8-K that Pacific Biosciences filed with the Securities and Exchange Commission, which includes copies of the agreements related to this transaction and this press release as exhibits."As long-term equity holders, we continue to believe that Pacific Biosciences' SMRT Sequencing technology brings unique value to biological research," commented James Flynn, General Partner at Deerfield. "We believe that Pacific Biosciences' products can have a significant impact on human health, and Deerfield is pleased to support the company in achieving that goal."