MALVERN, Pa., June 01, 2020 (GLOBE NEWSWIRE) — Baudax Bio, Inc. (NASDAQ:BXRX), a pharmaceutical company focused on therapeutics for acute care settings, today announced that it has closed on a credit facility of up to $50 million from funds managed by Marathon Asset Management, a global credit solutions partner. Proceeds from the facility will generally be used to support the commercial launch of ANJESOTM (meloxicam) injection, and for working capital purposes. JMP Securities LLC acted as exclusive financial advisor and sole placement agent to Baudax on this transaction.
“This strategic non-dilutive financing represents our strong belief in the future commercial prospects for ANJESO as a new, intravenous non-opioid option for the management of moderate to severe pain,” said Gerri Henwood, CEO of Baudax Bio. “The availability of these new funds, as well as incremental amounts of up to an additional $50 million, at Marathon’s discretion, to help support complementary and accretive acquisitions provides important financial flexibility for our commercial-stage organization and leaves us well positioned to execute on the launch of ANJESO and to grow our acute care franchise. Our newly hired sales force is on track to commence the launch this month.”This financing is in the form of a five-year term loan bearing interest at a fixed rate of 13.5%. Baudax will pay interest only for the first 24 months of the loan. The funds are structured in five tranches, to provide financial flexibility as needed, while balancing debt leverage and managing interest expense, with $10 million available immediately upon closing of the transaction. The additional four tranches will be available upon achieving certain minimum net revenue thresholds within set periods of times from the closing date. If Baudax achieves $10 million trailing 12-month EBITDA within 24 months of closing, then the term of the loan can be extended to six years with an interest only period of 36 months.In connection with the credit facility, Baudax issued to Marathon warrants to purchase 527,100 shares of Baudax common stock at an exercise price of $4.59 per share. Further information with respect to the credit facility and the warrants is set forth in the Form 8-K which will be filed by the Company with the Securities and Exchange Commission.About ANJESO™
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