NOVATO, Calif., July 1, 2014 (GLOBE NEWSWIRE) -- Raptor Pharmaceutical Corp. (Nasdaq:RPTP) today announced that it has entered into agreements for $70 million in funding from HealthCare Royalty Partners (HC Royalty) and its affiliates in a private placement. The funding includes $60 million in new convertible senior notes and an additional $10 million of funding pursuant to an amended and restated loan agreement, originally signed on December 20, 2012. The new capital will be used for expansion of the company's manufacturing capacity, expansion of commercial operations in Europe, advancement of the company's development programs and general corporate purposes, including working capital. Closing is expected to occur by the end of July 2014 and is subject to customary closing conditions under both the convertible note financing agreement and the amended and restated loan agreement.
Under the terms of the financing agreement, the convertible notes to be issued to HC Royalty and its affiliates will pay interest quarterly at a rate of 8.0% per year. The notes mature on August 1, 2019 unless earlier converted, redeemed or repurchased in accordance with their terms prior to such date. Prior to August 1, 2019 the notes are convertible into shares of Raptor common stock at an initial conversion rate of 57.14 shares per $1,000 principal amount of notes, subject to adjustment, which is equivalent to a conversion price of $17.50 per share, representing a 49.6% premium over the closing price of Raptor's common stock of $11.70 per share on July 1, 2014. In addition, the notes are subject to automatic conversion into shares of Raptor common stock or redemption, at Raptor's election subject to certain conditions, if Raptor's share price is at or above 175% of the conversion price over a 30 consecutive day period. Any payment of the principal amount of the notes will be subject to a 10% payment premium.