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Notes Payable
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Notes Payable
Notes Payable
In December 2015, we entered into the Oxford/EWB Loan Agreement pursuant to which we borrowed $50.0 million. We can also borrow an additional $20.0 million in two tranches of $10.0 million each through June 30, 2017, contingent upon the satisfaction of certain conditions including minimum net revenues from OMIDRIA. The Oxford/EWB Loan Agreement requires interest-only payments through July 1, 2017. Beginning in August 2017, principal and interest payments are due through the January 1, 2020 maturity date.
The Oxford/EWB Loan Agreement contains covenants that require us to maintain $10.0 million in restricted cash and certain eligible term investments and limit or restrict our ability to enter into certain transactions. In addition, we are required to either meet an annual OMIDRIA net revenue minimum for 2016 of $70.0 million and quarterly OMIDRIA revenue minimums in 2017 and 2018, or maintain 50% of the then-outstanding note payable balance in restricted cash and certain eligible term investments. The Oxford/EWB Loan Agreement also includes provisions related to events of default, the occurrence of a material adverse effect (MAE) and changes of control. The occurrence of an event of default could result in the acceleration of the Oxford/EWB Loan Agreement and, under certain circumstances, could increase our interest rate by 5.0% per annum during the period of default. There was no event of default under the Oxford/EWB Loan Agreement as of March 31, 2016.
As of March 31, 2016, the remaining unamortized discount and debt issuance costs associated with the debt were $3.6 million and $414,000, respectively.