| [February 14, 2012] |
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Santarus Increases Revolving Line of Credit to $35 Million and Extends Maturity to February 2015
SAN DIEGO --(Business Wire)--
Santarus, Inc. (NASDAQ: SNTS) today announced that it has increased its
revolving line of credit with Comerica Bank from $25 million to $35
million and extended the maturity from July 11, 2013 to February 13,
2015. In addition, Santarus has improved the interest terms on
outstanding indebtedness under the credit facility with the option of
paying either Comerica's prime rate (representing a reduction of 0.5%)
or the LIBOR rate plus 2.25% (representing a reduction of 0.75%).
Santarus makes interest-only payments on any draws from the line of
credit and any principal outstanding is due and payable at the maturity
date. Santarus has drawn $10 million on the line of credit to date.
"The revolving line of credit provides an attractive source of
non-dilutive capital, and the increased size and improved terms give us
flexibility in furthering our corporate objectives," said Debra P.
Crawford, senior vice president and chief financial officer of Santarus.
"We are pleased to extend our commercial banking relationship with
Comerica, and we look forward to Comerica's continued support as we
focus on growing our business."
Santarus originally established the line of credit with Comerica in July
2006 to have capital available for working capital needs and other
corporate purposes. The credit facility is secured by Santarus' assets,
excluding intellectual property, and contains affirmative and negative
covenants, including certain financial covenants.
About Santarus
Santarus, Inc. is a specialty biopharmaceutical company focused on
acquiring, developing and commercializing proprietary products that
address the needs of patients treated by physician specialists. The
company's current commercial efforts are focused on GLUMETZA®
(metformin hydrochloride extended release tablets) and CYCLOSET®
(bromocriptine mesylate) tablets, which are indicated as adjuncts to
diet and exercise to improve glycemic control in adults with type 2
diabetes, and on FENOGLIDE®
(fenofibrate) tablets, which is indicated as an adjunct to diet to
reduce high cholesterol.
Santarus also has a diverse pipeline, including three investigational
drugs in late-stage clinical development: UCERIS™
(budesonide) tablets for induction of remission of active ulcerative
colitis, RHUCIN® (recombinant human C1 inhibitor) for
treatment of acute attacks of hereditary angioedema and rifamycin SV MMX®
for treatment of travelers' diarrhea, in addition to other earlier-stage
development programs. More information about Santarus is available at www.santarus.com.
Santarus cautions you that statements included in this press release
that are not a description of historical facts are forward-looking
statements. The inclusion of forward-looking statements should
not be regarded as a representation by Santarus that any of its plans
will be achieved. Actual results may differ materially from those
set forth in this release due to the risks and uncertainties inherent in
Santarus' business, including, without limitation: the potential for any
debt that Santarus incurs under the line of credit to impair its ability
to obtain additional financing in the future; Santarus' ability to
satisfy the conditions to borrowing under the line of credit; Santarus'
ability to comply with the covenants under the line of credit; the
potential for an event of default under the line of credit, and the
corresponding risk of acceleration of repayment and potential
foreclosure on the assets pledged to secure the line of credit;
difficulties or delays in development, testing, manufacturing and
marketing of, and maintaining regulatory approvals for, Santarus'
products; and other risks detailed in Santarus' prior press releases as
well as in public periodic filings with the Securities and Exchange
Commission.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. All
forward-looking statements are qualified in their entirety by this
cautionary statement and Santarus undertakes no obligation to revise or
update this news release to reflect events or circumstances after the
date hereof. This caution is made under the safe harbor
provisions of Section 21E of the Private Securities Litigation Reform
Act of 1995.
Santarus®, FENOGLIDE®
and UCERIS™ are trademarks of Santarus, Inc.
GLUMETZA® is a trademark of Biovail
Laboratories International S.r.l. licensed exclusively in the United
States to Depomed, Inc. CYCLOSET® is a
trademark of VeroScience LLC. MMX® is a
trademark of Cosmo Technologies Limited. RHUCIN®
is a trademark of Pharming Group NV.

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