LONDON (Alliance News) - SkyePharma PLC said Monday that it will pay back the entire outstanding euro element of its loan with CRC European Loan Origination Platform Ltd to cut GBP1.8 million in finance costs.
The biotechnology company will pay the outstanding EUR12.7 million of the facility October 3 at GBP10.6 million, at current exchange rates, including accrued interest and a make-whole amount of 5.2%. It will pay for this from the USD8 million milestone payment from Pacira Pharmaceuticals Inc's EXPAREL pain relief product in June which is due to received September 30.
The overall interest rate for the Euro principal is currently 13.2%, SkyePharma said, and early repayment will cut GBP1.8 million in finance costs.
Following the repayment the CRC Finance Facility will be USD16.3 million, with an overall interest rate of 10.2%.
The company said it will continue to review further opportunities to reduce its debt, whilst retaining sufficient capacity to invest in developing its portfolio and support the growth of its existing products.
Shares in SkyePharma were trading 0.7% lower at 308.00 pence per share Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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