Exelixis to Raise $160 Million through Financing Transactions with Silicon Valley Bank and Deerfield Management6/3/2010 11:25:00 AM Client NewsSOUTH SAN FRANCISCO, Calif., Jun 03, 2010 (BUSINESS WIRE) --Exelixis, Inc. (Nasdaq:EXEL) today announced that it has entered into agreements providing for two separate financing transactions with Silicon Valley Bank and Deerfield Management for an aggregate of $160.0 million in capital. Exelixis expects to use the proceeds from these transactions to finance the repayment of the remaining obligations under its loan from GlaxoSmithKline and to fund development activities related to its lead compound XL184. The blended cost of capital for both transactions is expected to remain under 10%.
The transaction with Silicon Valley Bank is an extension of the company's existing credit facility with the bank and provides for a new seven-year term loan in an amount of $80.0 million. The principal amount outstanding under the term loan will accrue interest at 1.00% per annum, payable monthly, and will be fully secured by deposit accounts with Silicon Valley Bank. The transaction is expected to close by June 4, 2010.
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