INCLINE VILLAGE, Nev. and NEW YORK, Feb. 18, 2014 /PRNewswire/ -- PDL BioPharma, Inc. (NASDAQ: PDLI) and Paradigm Spine, LLC, a provider of innovative spinal implant technologies, announced today that the parties have entered into a credit agreement whereby PDL will provide Paradigm with up to $75 million of secured debt financing. Armentum Partners acted as financial advisors to Paradigm Spine for the transaction.
An initial $50 million was provided at the close of the transaction, with the remaining $25 million to be funded in two equal tranches upon achievement of specified milestones.
Paradigm's landmark coflex ® Interlaminar stabilization device for patients with spinal stenosis was approved by the U.S. Food and Drug Administration (FDA) in late 2012 and is sold in more than 50 countries. Paradigm will use the proceeds to refinance its existing credit facility and primarily expand its domestic commercial operations."We are happy to be able to provide funding for Paradigm Spine's coflex® Interlaminar stabilization device™ for patients with spinal stenosis. The device is strongly supported by clinical outcomes and pharmacoeconomic data," stated John P. McLaughlin, president and chief executive officer of PDL BioPharma. "Following a year of record growth, Paradigm Spine is well positioned for its next phase of expansion. Given our coflex® FDA approval, this financing assists us in accelerating Paradigm's market penetration, especially domestically," said Marc Viscogliosi, chairman and chief executive officer of Paradigm Spine. "This financing is our first transaction this year, after a successful 2013 during which we brought in a number of high-quality, income generating assets like Paradigm Spine. We continue to find investment opportunities and expect to announce additional deals in the coming months," PDL's Mr. McLaughlin added.