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DEBT

3 Months Ended

Mar. 31, 2019

NOTE 9 – DEBT

On May 1, 2018, we entered into a Credit and Security Agreement, or the Credit Agreement, with MidCap Financial Trust, or MidCap, as agent, or Agent, and as lender, and the additional lenders party thereto from time to time (together with MidCap as a lender, the Lenders), as amended.

The Credit Agreement provided a secured term loan facility in an aggregate principal amount of up to $200,000,000, or the Term Loan. Under the terms of the Credit Agreement, the Term Loan was available to be made in three separate tranches, with each tranche to be made available to us, at our option, upon our achievement of certain milestones. Amounts borrowed under the Term Loan bore interest at a rate equal to the sum of (i) one-month LIBOR (subject to a LIBOR floor of 1.50%) plus (ii) 7.75% per annum. Interest on amounts borrowed under the Term Loan was due and payable monthly in arrears. Interest expense related to the Term Loan for the three months ending March 31, 2019 was $1,969,872.

As of March 31, 2019, we had $75,000,000 in borrowings outstanding under the Term Loan, which are classified as long-term debt in the accompanying unaudited consolidated financial statements. We incurred $3,786,918 in debt issuance costs related to the Term Loan. Debt financing fees related to the entire Term Loan have been allocated pro rata between the funded and unfunded portions of each tranche. Allocated debt financing fees related to Tranche 1 of $1,888,844 have been reclassified to debt discount and are accreted to interest expense using the effective interest method. Debt financing fees associated with unfunded tranches were deferred as assets until the Tranche 2 and Tranche 3 milestones have been met. As of March 31, 2019, deferred financing fees related to Tranche 2 and Tranche 3 were included in other current assets in the accompanying consolidated financial statements. During the three months ended March 31, 2019, we amortized $120,146 of debt issuance costs related to Tranche 1 as interest expense in the accompanying unaudited consolidated financial statements. The overall effective interest rate was approximately 11% as of March 31, 2019. As of March 31, 2019, the carrying value of debt consisted of the following:

	March 31, 2019			December 31, 2018
Term Loan	$	75,000,000		$	75,000,000
Debt discount and financing fees		(1,498,840	)		(1,618,986	)
TOTAL LONG-TERM DEBT	$	73,501,160		$	73,381,014

On April 24, 2019, we entered into a Financing Agreement, or the Financing Agreement, with TPG Specialty Lending, Inc., as administrative agent, or Administration Agent, various lenders from time to time party thereto, and certain of our subsidiaries party thereto from time to time as guarantors, which provides a $300,000,000 first lien secured term loan credit facility, or the Facility, to the Company. See Note 16 - Subsequent Events.

On April 24, 2019, we terminated the Credit Agreement. A portion of the initial tranche of borrowing under the Facility in the amount of approximately $81,661,000 was used to repay all amounts outstanding under the Credit Agreement, which included a prepayment fee of 4%, a repayment fee of 4% and other fees and expenses payable to the lenders under the Credit Agreement.