UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 30, 2019
Tetraphase Pharmaceuticals, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 001-35837 | 20-5276217 | ||
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
||
480 Arsenal Way Watertown, Massachusetts |
02472 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (617) 715-3600
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading
|
Name of exchange
|
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Common Stock, $0.001 par value per share | TTPH | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.02 |
Termination of a Material Definitive Agreement. |
On August 30, 2019, Tetraphase Pharmaceuticals, Inc. (the Company) entered into a payoff letter with Solar Capital Ltd., as collateral agent and lender, and the other lenders named therein (Solar Capital Ltd. and the other lenders collectively referred to herein as the Lenders), pursuant to which the Company agreed to pay off and thereby terminate its Loan and Security Agreement, dated as of November 2, 2018, as amended, with the Lenders (the Loan Agreement).
Pursuant to the payoff letter, the Company will pay, on or about August 30, 2019, a total of $30.7 million to the Lenders, representing the principal balance, accrued interest outstanding and a portion of the final fee under the Loan Agreement in repayment of the Companys outstanding obligations under the Loan Agreement.
Upon the payment of the $30.7 million, all outstanding indebtedness and obligations of the Company owing to the Lenders under the Loan Agreement will be deemed paid in full. The Loan Agreement and the notes thereunder, as well as the security interests in the assets of the Company securing the Loan Agreement and note obligations, will be terminated. The Lenders will retain the warrants issued to them in connection with the origination of the Loan Agreement obligations.
The Company originally entered into the Loan Agreement on November 2, 2018 and borrowed $30.0 million. The Companys obligations under the Loan Agreement were secured by a first priority security interest in substantially all of its assets. The Company agreed not to pledge or otherwise encumber its intellectual property assets, subject to certain exceptions.
The description of the payoff letter contained herein does not purport to be complete and is qualified in its entirety by reference to the payoff letter, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 30, 2019 | By: |
/s/ Maria Stahl |
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Maria Stahl | ||||||
Chief Business Officer and General Counsel |
Exhibit 10.1
Execution Version
SOLAR CAPITAL LTD.
500 Park Avenue, 3rd Floor
New York, NY 10022
August 30, 2019
TETRAPHASE PHARMACEUTICALS, INC.
480 Arsenal Way
Watertown, MA 02472
Ladies and Gentlemen:
Reference is made to that certain Loan and Security Agreement dated as of November 2, 2018 (as amended by that certain First Amendment to Loan and Security Agreement dated as of March 14, 2019 and as further amended, restated, modified, or supplemented from time to time, the Loan Agreement) by and among SOLAR CAPITAL LTD., a Maryland corporation (Solar), as collateral agent (in such capacity, together with its successors and assigns in such capacity, Collateral Agent), the lenders listed on Schedule 1.1 to the Loan Agreement or otherwise a party thereto from time to time including Solar in its capacity as a Lender (each a Lender and collectively, the Lenders), and Tetraphase Pharmaceuticals, Inc., a Delaware corporation (Borrower), and the loans made thereunder (the Loans). Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement.
Collateral Agent and the Lenders understand that on the Payoff Date (as hereinafter defined) Borrower shall repay in full all of the obligations to Collateral Agent and the Lenders under the Loan Agreement and any other Loan Documents.
1. This letter will confirm that, upon receipt by Solar, each Lender, and Solars outside legal counsel of
(a) wire transfers of immediately available funds to Solar, each Lender, and Solars outside legal counsel in the aggregate amount of (i) $30,722,353.26 (the Payoff Amount) representing (x) principal, interest accrued through August 30, 2019 on the outstanding Loans, the Final Fee, and the Prepayment Premium, as set forth on Schedule 1 hereto, and (y) legal fees in the amount of $5,000.00, plus (ii) any per diem amount due pursuant to Section 3 hereof; and
(b) a fully-executed counterpart of this letter agreement signed by Borrower;
then,
(i) the commitments under the Loan Agreement and under any other loan arrangement between Borrower, Collateral Agent and the Lenders shall be terminated; and
(ii) all of the obligations of Borrower to Collateral Agent and the Lenders (other than inchoate indemnity obligations and obligations under any and all Warrants), and all Loans shall be paid and satisfied in full.
The date on which the conditions in the foregoing clauses (a) and (b) shall first be satisfied is herein called the Payoff Date. Upon receipt by Solar, each Lender and Solars outside legal counsel of the Payoff Amount in accordance with the foregoing and the satisfaction of the other conditions referred to above, all security interests and other liens of every type at any time granted to or held by Collateral Agent in or on any Collateral provided by any Borrower shall be released and terminated, without further action by Collateral Agent (other than as provided below), on and with effect from the Payoff Date.
SOLAR CAPITAL LTD.
August 30, 2019
Page 2
Please transfer the Payoff Amount as follows:
$21,092,582.57 due to Solar to:
SOLAR CAPITAL LTD.
CITIBANK, NYC
ABA#: 021-000-089
Account Name: Solar Capital Ltd
Account No.: 30938411
Reference: Tetraphase Pharmaceutical, Inc. Payoff
$5,529,123.59 due to SCP Private Credit Income Fund SPV, LLC to:
SCP PRIVATE CREDIT INCOME FUND SPV, LLC
WELLS FARGO BANK, NA
ABA#: 121-000-248
Account Name: SCP Private Credit Income Fund SPV, LLC
For Credit To: CDO Clearing
Account No.: 6355067033
F/C A/C No.: 49508300
Reference: Tetraphase Pharmaceutical, Inc. Payoff
$4,095,647.10 due to SCP Private Credit Income BDC SPV, LLC to:
SCP PRIVATE CREDIT INCOME BDC SPV, LLC
WELLS FARGO BANK, NA
ABA#: 121-000-248
Account Name: SCP Private Credit Income BDC SPV, LLC
For Credit To: CDO Clearing
Account No.: 6355067033
F/C A/C No.: 83035200
Reference: Tetraphase Pharmaceutical, Inc. Payoff
and $5,000.00, due to Solars outside legal counsel to:
LATHAM & WATKINS LLP
CITIBANK, DELAWARE
One Penns Way, New Castle, DE 19720
Account No.: 3911-7003
ABA routing No.: 0311-00209
Invoice No.: 1900701665
each by wire transfer of immediately available funds, for receipt on the Payoff Date.
2. Borrower hereby confirms that any commitment of the Lenders to provide Borrower with additional Loans is terminated as of the Payoff Date. Until the Payoff Date Borrower shall not request additional Loans.
3. Borrower hereby agrees that if the Payoff Amount is not paid by 2:00 p.m. Eastern time on August 30, 2019, the portion of the Payoff Amount due and payable (a) to Solar shall increase each day by $5,432.75; (b) to SCP Private Credit Income Fund SPV, LLC shall increase each day by $1,424.12; and (c) to SCP Private Credit Income BDC SPV, LLC shall increase each day by 1,054.90. Upon request of Borrower, Solar shall provide Borrower with a revised figure for the amount of interest to be paid as a part of the Payoff Amount.
SOLAR CAPITAL LTD.
August 30, 2019
Page 3
4. Upon receipt of the Payoff Amount, Collateral Agent and the Lenders hereby authorize Borrower or its designee to file any documentation necessary to evidence the termination of Collateral Agents liens in the Collateral (including but not limited to UCC-3 termination statement(s)).
5. At Borrowers sole expense, Collateral Agent shall execute and deliver to or for Borrower such additional documents and shall provide such additional information as Borrower may reasonably require to carry out the terms of this letter agreement, including delivery of any collateral in Collateral Agents possession and such lien release and termination documentation as Borrower shall reasonably request with respect to the liens on the Collateral.
6. Borrower shall execute and deliver to or for Collateral Agent and the Lenders such additional documents and shall provide such additional information as Collateral Agent and the Lenders may reasonably require to carry out the terms of this letter agreement.
7. Borrower on behalf of itself and its Affiliates hereby releases, acquits, and forever discharges Collateral Agent and the Lenders, and each and every past and present subsidiary, affiliate, stockholder, officer, director, agent, servant, employee, representative, and attorney of Collateral Agent and the Lenders, from any and all claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including attorneys fees) of any kind, character, or nature whatsoever, known or unknown, fixed or contingent, which Borrower or its Affiliates may have or claim to have now or which may hereafter arise out of or in connection with any act of commission or omission of Collateral Agent and the Lenders existing or occurring through and including to the date of this letter agreement or any instrument executed through and including to the date of this letter agreement, including, without limitation, any claims, liabilities or obligations arising with respect to the Loan Agreement, the other Loan Documents or this letter agreement. The provisions of this paragraph shall be binding upon Borrower and its Affiliates and shall inure to the benefit of Collateral Agent, the Lenders and their respective successors and assigns.
8. Notwithstanding anything herein to the contrary, Borrower agrees that any and all Warrants shall remain in full force and effect after the Payoff Date pursuant to the terms therein.
9. Borrower hereby agrees that if the Payoff Amount is not received by Solar, each Lender, and Solars outside legal counsel on or before 2:00 pm Eastern time on August 30, 2019, then this letter agreement shall terminate and be of no further force and effect.
10. This letter agreement shall be governed by and construed in accordance with the law of the State of New York.
11. This letter may be executed by each party on a separate counterpart, each of which when so executed and delivered shall be an original, but all of which, taken together, shall constitute one agreement.
[Signature Pages Following]
Very truly yours,
SOLAR CAPITAL LTD., as the Collateral Agent and a Lender |
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By: | /s/ Anthony J. Storino | |
Name: | Anthony J. Storino | |
Title: | Authorized Signatory |
SCP PRIVATE CREDIT INCOME FUND SPV, LLC, as a Lender |
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By: | /s/ Anthony J. Storino | |
Name: | Anthony J. Storino | |
Title: | Authorized Signatory |
SCP PRIVATE CREDIT INCOME BDC SPV LLC, as a Lender |
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By: | /s/ Anthony J. Storino | |
Name: | Anthony J. Storino | |
Title: | Authorized Signatory |
[Signature Page to Payoff Letter (Solar/Tetraphase)]
Agreed to by the undersigned:
TETRAPHASE PHARMACEUTICALS, INC., as Borrower |
By: | /s/ Larry Edwards | |
Name: | Larry Edwards | |
Title: | President and Chief Executive Officer |
[Signature Page to Payoff Letter (Solar/Tetraphase)]
SCHEDULE 1
Solar Capital
Ltd. |
SCP Private
Credit Income Fund SPV, LLC |
SCP Private
Credit Income BDC SPV, LLC |
Total | |||||||||||||
Principal |
$ | 20,600,000.00 | $ | 5,400,000.00 | $ | 4,000,000.00 | $ | 30,000,000.00 | ||||||||
Interest (8/1/19 through 8/30/19) |
$ | 162,982.57 | $ | 42,723.59 | $ | 31,647.10 | $ | 237,353.26 | ||||||||
Final Fee |
$ | 329,600.00 | $ | 86,400.00 | $ | 64,000.00 | $ | 480,000.00 | ||||||||
Prepayment Premium |
Waived | Waived | Waived | Waived | ||||||||||||
Total Amount Owing |
$ | 21,092,582.57 | $ | 5,529,123.59 | $ | 4,095,647.10 | $ | 30,717,353.26 | ||||||||
Per Diem |
$ | 5,432.75 | $ | 1,424.12 | $ | 1,054.90 | $ | 7,911.77 |