Document:

Exhibit 4.3

 

CONSENT AND AMENDMENT NO. 1 TO CREDIT AGREEMENT

 

CONSENT AND AMENDMENT NO. 1 (this “Consent and Amendment”) dated as of December 2, 2015 to the Credit Agreement dated as of July 23, 2014 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among Magellan Rx Management, Inc., a Delaware corporation (“MRxM”), as borrower, Magellan Health, Inc., a Delaware Corporation (“Magellan”), the Lenders party thereto from time to time and Citibank, N.A., as Administrative Agent (the “Administrative Agent”).

 

WHEREAS, Magellan has advised the Lenders that it intends to enter into a series of transactions by and among Magellan and certain of its Subsidiaries, as more fully set forth on Schedule 1 to this Consent and Amendment (such transactions, together with any other transactions that are necessary to facilitate the consummation of such transactions and not adverse in any material respect to the interest of the Lenders or are otherwise approved by the Administrative Agent, the “Permitted Restructuring Transactions”), and each Lender party hereto (which Lenders constitute all of the Lenders) consents to the Permitted Restructuring Transactions, subject to the terms and conditions set forth herein;

 

WHEREAS, Magellan has requested that the Credit Agreement be amended on the terms set forth herein and each Lender party hereto consents to the amendments set forth in herein. subject to the terms and conditions set forth herein; and

 

Accordingly. in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. the parties hereto hereby agree as follows:

 

SECTION 1.  Defined Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement, as amended by this Consent and Amendment (the “Amended Credit Agreement”). Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall, as of the Amendment Effective Date (as defined below), refer to the Credit Agreement as amended hereby.

 

SECTION 2. Consent to Permitted Restructuring Transactions. Each Lender party hereto hereby (a) agrees that, notwithstanding anything to the contrary in the Credit Agreement or the Amended Credit Agreement, Magellan and its Subsidiaries may consummate the Permitted Restructuring Transactions requiring consent under the Credit Agreement on or after the Amendment Effective Date, (b) agrees that no Default or Event of Default shall arise under the Credit Agreement or the Amended Credit Agreement solely as a result of the consummation of the Permitted Restructuring Transactions and (c) authorizes the Administrative Agent to enter into the Joinder Agreement in the form attached hereto as Exhibit A (the “Joinder Agreement”).

 

 

SECTION 3. Amendments to credit Agreement.

 

(a)                        Section 11 of the Credit Agreement is hereby amended on and as of the date on which the transactions described in paragraphs 1 through 3 of Schedule 1 to this Consent and Amendment are consummated (the “Permitted Restructuring Effective Date”)  by adding the following defined terms in the appropriate alphabetical position:

 

“Consent and Amendment No. 1” means that certain Consent and Amendment No. 1, dated as of December 2, 2015, by and among Magellan, the Borrower, the Administrative Agent and the Lenders.

 

“Permitted Restructuring Effective Date” means the date on which the transactions described in paragraphs 1 through 3 of Schedule 1 to Consent and Amendment No. 1 are consummated.

 

(b)                        Section 11 of the Credit Agreement is hereby amended on and as of the Permitted Restructuring Effective Date by amending and restating the definition of “Wholly-Owned Specified Subsidiary” so that it reads in its entirety as follows:

 

“Wholly-Owned Specified Subsidiary” shall mean (A) Magellan Rx Management, Inc., (B) any Wholly-Owned Subsidiary of Magellan Rx Management, Inc. (other than any such Person that was a Subsidiary of Magellan Rx Management, Inc. on the Permitted Restructuring Effective Date) and (C) any Wholly-Owned Subsidiary of Magellan that is prohibited from entering into any Credit Document because to do so either (x) would violate a law, regulation, rule, order, approval, license or other restriction applicable to such Wholly-Owned Subsidiary due to the regulated nature of such Wholly-Owned Subsidiary’s operations and issued or imposed by any governmental authority having jurisdiction over such Wholly-Owned Subsidiary or (y) would reasonably be expected to cause such Wholly-Owned Subsidiary to fail to satisfy a net worth, net equity or capital requirement or similar calculation or requirement imposed on such Wholly-Owned Subsidiary by any governmental authority having jurisdiction over such Wholly-Owned Subsidiary due to the regulated nature of such Wholly-Owned Subsidiary’s operations; provided, that in no event shall the Borrower be a Wholly-Owned Specified Subsidiary.

 

SECTION 4. Representations and Warranties. To induce the other parties hereto to enter into this Consent and Amendment, each of Magellan and MRxM represents and warrants to each other party hereto, on and as of the Amendment Effective Date, that the following statements are true and correct in all material respects on and as of the Amendment Effective Date:

 

(a)                        Each of Magellan and MRxM has the corporate power and authority to execute, deliver and perform the terms and provisions of this Consent and Amendment and the Amended Credit Agreement, and has taken all necessary corporate action to authorize the execution, delivery and performance by it of each of this Consent and Amendment and the Amended Credit Agreement.

 

2

 

(b)                        Each of Magellan and MRxM has duly executed and delivered this Consent and Amendment, and this Consent and Amendment constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

 

(c)                         Neither the execution, delivery or performance by Magellan or MRxM of this Consent and Amendment, nor compliance by it with the terms and provisions hereof, will violate any provision of the certificate or articles of incorporation or by-laws (or equivalent organizational documents), as applicable, of each of Magellan and MRxM or any of their Subsidiaries, except to the extent that such contravention, conflict or violation could not reasonably be expected to result in a Material Adverse Effect.

 

(d)                        The representations and warranties contained in the Credit Agreement and in the other Credit Documents are true and correct in all material respects on and as of the Amendment Effective Date (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date).

 

(e)                         As of the Amendment Effective Date, no Default or Event of Default exists immediately before or immediately after giving effect to this Consent and Amendment.

 

SECTION 5 Effectiveness. This Consent and Amendment shall become effective on the date when the Administrative Agent shall have received from each of Magellan and MRxM and each of the Lenders a counterpart signature page of this Consent and Amendment duly executed by such party (the “Amendment Effective Date”).

 

SECTION 6. Reference To and Effect Upon the Credit Documents.

 

(a)                        Except as expressly set forth herein, all terms, conditions, covenants, representations and warranties contained in each of the Credit Documents and all rights of the Lenders and all obligations of Magellan and MRxM shall remain in full force and effect. Magellan and MRxM hereby confirm that the Credit Documents are in full force and effect and are hereby ratified and confirmed in all respects. Without limiting the foregoing, Magellan hereby confirms that the guarantees under the Credit Documents do, and shall continue to, guarantee the payment of all of the Obligations (as applicable and, in each case, as defined and subject to the limitations set forth in the Credit Documents).

 

(b)                        The parties hereto acknowledge and agree that (i) this Consent and Amendment and the other agreements, documents and instruments executed and delivered in connection herewith do not constitute a novation, payment and reborrowing, or termination of the obligations and liabilities of Magellan and MRxM under the Credit Agreement or any of the Credit Documents (except as otherwise contemplated in the Joinder Agreement), and (ii) such obligations and liabilities are in all respects continuing (as amended hereby) with only the terms thereof being modified as provided in or contemplated by this Consent and Amendment.

 

3

 

(c)                   This Consent and Amendment shall constitute a Credit Document for all purposes of the Credit Documents.

 

SECTION 7. Counterparts. This Consent and Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Delivery of an executed counterpart hereof by facsimile or electronic transmission shall be as effective as delivery of an original executed counterpart hereof.

 

SECTION 8. Governing Law. This Consent and Amendment shall be governed by and construed in accordance with the laws of the State of New York.

 

[Signature Pages Follow]

 

4

 

IN WITNESS WHEREOF, the parties hereto have caused this Consent and Amendment to be duly executed as of the date first above written.

 

 

	
 
    	
MAGELLAN RX MANAGEMENT,   
    
	
 
    	
INC.,   as Borrower
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Margie Smith
    
	
 
    	
 
    	
Name:  Margie   Smith
    
	
 
    	
 
    	
Title:    Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MAGELLAN   HEALTH, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Linton Newlin
    
	
 
    	
 
    	
Name:  Linton C.   Newlin
    
	
 
    	
 
    	
Title:    Senior   Vice President, Tax
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
CITIBANK, N.A., as Administrative
    
	
 
    	
Agent and Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Vondriska
    
	
 
    	
 
    	
Name:  Michael Vondriska
    
	
 
    	
 
    	
Title:    Vice President
    

 

 

	
 
    	
WELLS FARGO BANK, N.A.,   as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew Olson
    
	
 
    	
 
    	
Name:  Matthew Olson
    
	
 
    	
 
    	
Title:    Director
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
THE BANK OF   TOKYO-MITSUBISHI
    
	
 
    	
UFJ, LTD.,   as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian McNany
    
	
 
    	
 
    	
Name:  Brian   McNany
    
	
 
    	
 
    	
Title:    Director
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
U.S. Bank National   Association, as 
    
	
 
    	
Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jennifer Hwang
    
	
 
    	
 
    	
Name:
    	
Jennifer Hwang
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
SUNTRUST BANK, as   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Bass
    
	
 
    	
 
    	
Name:
    	
Katherine Bass
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
FIFTH THIRD BANK, as   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Vera B. McEvoy
    
	
 
    	
 
    	
Name:
    	
Vera B. McEvoy
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
Compass Bank, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Cameron   Gateman
    
	
 
    	
 
    	
Name:
    	
Cameron Gateman
    
	
 
    	
 
    	
Title:
    	
Senior Banker
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
Credit Suisse AG,   Cayman Islands 
    
	
 
    	
Branch,   as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher   Day
    
	
 
    	
 
    	
Name:
    	
Christopher Day
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kelly Heimrich
    
	
 
    	
 
    	
Name:
    	
Kelly Heimrich
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
JPMORGAN CHASE BANK,   N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dawn Lee Lum
    
	
 
    	
 
    	
Name: Dawn Lee Lum
    
	
 
    	
 
    	
Title: Executive   Director
    

 

[Signature Page to Amendment No. 1]

 

 

	
 
    	
Manufacturers Bank, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dirk Price
    
	
 
    	
 
    	
Name:
    	
Dirk Price
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Amendment No. 1]mstx-ex101_6.htm

Exhibit 10.1

 

Execution Version

 

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT (this “Amendment”) to the Loan and Security Agreement, dated as of August 11, 2015, as previously amended pursuant to that certain First Amendment thereto dated as of September 28, 2015 and that certain Second Amendment thereto dated as of December 31, 2015 (as so amended, the “Loan Agreement”), is made by and among MAST THERAPEUTICS, INC., a Delaware corporation (“Borrower”), HERCULES CAPITAL, INC. (formerly known as HERCULES TECHNOLOGY GROWTH CAPITAL, INC.), a Maryland corporation, as administrative agent (“Agent”), and the lender party hereto (“Lender”), and shall be effective as of February 25, 2016.  

RECITALS

A.Borrower, Agent and Lender are parties to the Loan Agreement.

B.The parties wish to amend the Loan Agreement, as provided herein. 

C.The Loan Agreement may be amended pursuant to Section 11.3(b) thereof by the written agreement of Borrower, Agent and Lender (which, for the avoidance of doubt, is the Required Lender).

AGREEMENT

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Defined Terms

. Capitalized terms used but not defined herein (including in the recitals) shall have the meanings assigned to such terms in the Loan Agreement.

SECTION 2.   Amendments to Loan Agreement. Subject to all of the terms and conditions set forth in this Amendment, the parties hereby agree to the following amendments to the Loan Agreement:

(a)  The definition of “Amortization Date” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

““Amortization Date” means July 1, 2016; provided, however, that if Borrower has satisfied the Interest Only Extension Condition on or before July 1, 2016, then the Amortization Date shall mean March 1, 2017; provided, further, that if Borrower satisfies the Interest Only Extension Condition during the time period from July 2, 2016 through July 31, 2016, inclusive, then the Amortization Date shall initially mean July 1, 2016 but immediately upon achievement of the Interest Only Extension Condition, the Amortization Date shall be revised to mean March 1, 2017.” 

(b)  The definitions of “First Interest Only Extension Condition” and “Second Interest Only Extension Condition” are each deleted from Section 1.1 of the Loan Agreement and a new definition of “Interest Only Extension Condition” is hereby added to Section 1.1 of the Loan Agreement, such definition to read in its entirety as follows:

““Interest Only Extension Condition” means Borrower’s satisfaction of each of the following conditions: (a) no default or Event of Default under any Loan Document shall have occurred and be continuing, (b) Borrower has not prepaid the Second Advance pursuant to Section 2.4(b), and (c) demonstration by Borrower, to the reasonable satisfaction of Agent, of positive results in the EPIC Phase 3 study of vepoloxamer in patients with sickle cell disease.”

(c)  The definition of “Second Advance Prepayment Conditions” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

 

 

““Second Advance Prepayment Condition” means that, on or before July 31, 2016, Borrower shall have demonstrated, to the reasonable satisfaction of Agent, positive results in the EPIC Phase 3 study of vepoloxamer in patients with sickle cell disease.”

(d)  The definition of “Term Loan Maturity Date” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

““Term Loan Maturity Date” means January 1, 2019; provided, however, if the Amortization Date is extended to March 1, 2017, then the Term Loan Maturity Date shall mean October 1, 2019.

(e)  Section 2.4(b) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

“(b)Unless Borrower has achieved the Second Advance Prepayment Condition on or before the date specified therein, on July 31, 2016, Borrower shall prepay the outstanding amount of all principal and accrued interest in respect of the Second Advance and all unpaid fees and expenses accrued to such date; provided, however, Borrower shall not be required to pay any Prepayment Charge in connection with the required prepayment of the Second Advance pursuant this Section 2.4(b). Borrower’s failure to make the prepayment required under this Section 2.4(b) shall constitute an Event of Default under Section 9.1.” 

Conditions to this Amendment

. This Amendment shall become effective only if Borrower has satisfied the following conditions as of the date hereof:

(a)  Borrower shall have delivered to Agent an additional facility charge payment of $37,500; and

(b)  Borrower shall have delivered to Agent a duly executed second amendment to the Warrant Agreement in the form attached hereto as Exhibit A (the “Warrant Amendment”).

SECTION 4.  Effect on Loan Documents. Except as specifically amended herein, all Loan Documents shall continue to be in full force and effect and are ratified and confirmed in all respects. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or Agent under any of the Loan Documents, and it shall not constitute a waiver of any provision of the Loan Documents. Any reference to the Loan Agreement in any other Loan Document shall be a reference to the Loan Agreement as amended by this Amendment.

SECTION 5.  Representations and Warranties. Borrower represents and warrants to Agent and Lender as follows:

(a)Borrower’s execution, delivery and performance of this Amendment, (i) has been duly authorized by all necessary corporate action of Borrower, (ii) will not result in the creation or imposition of any Lien upon the Collateral or the Intellectual Property, other than Permitted Liens and the Liens created by the Loan Documents, (iii) does not violate any provisions of Borrower’s Certificate of Incorporation, bylaws, or any law, regulation, order, injunction, judgment, decree or writ to which Borrower is subject, and (iv) does not violate any contract or agreement or require the consent or approval of any other Person which has not already been obtained. The individual or individuals executing this Amendment are duly authorized to do so. 

(b)All of Borrower’s representations and warranties contained in the Agreement and all schedules related thereto are correct in all material respects on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.

(c)No event has occurred and is continuing or will result from the consummation of the transactions contemplated by this Amendment that would constitute a default or an Event of Default.

 

2

 

 

(d)This Amendment has been duly executed and delivered on Borrower’s behalf by its duly authorized officer, and constitutes Borrower’s legal, valid and binding obligations, enforceable in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium and other similar laws affecting the enforcement of creditors’ rights generally and the exercise of judicial discretion in accordance with general principles of equity.  

SECTION 6.  Governing Law. This Amendment shall be governed by, and construed in accordance with, the law of the State of California. 

Counterparts

. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile, .pdf or other electronic imaging means of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart of this Amendment. Agent may also require that any such documents and signatures delivered by facsimile, .pdf or other electronic imaging means be confirmed by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by facsimile, .pdf or other electronic imaging means.

 

[Remainder of page intentionally blank]

 

3

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.

BORROWER:

 

MAST THERAPEUTICS, INC.

 

 

By: /s/ Brandi Roberts

Name:  Brandi Roberts

Title:  Chief Financial Officer

 

AGENT:

 

HERCULES CAPITAL, INC.

 

 

By: /s/ Jennifer Choe

Name:  Jennifer Choe

Title:  Assistant General Counsel

 

LENDER:

 

HERCULES TECHNOLOGY III, L.P.

 

	
 
	
By: 
	
Hercules Technology SBIC Management, LLC, its General Partner

 

	
 
	
By:
	
Hercules Capital, Inc., its Manager

 

 

By: /s/ Jennifer Choe

Name:  Jennifer Choe

Title:  Assistant General Counsel

 

 

 

 

 

EXHIBIT A

 

Second Amendment to Warrant Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]