aaiPharma closes on new $140 million credit facility via Silver Point

By Sara Rosenberg

New York, April 26 - aaiPharma Inc. closed on its $140 million two-year credit facility that was provided by Silver Point Finance LLC.

The new credit facility replaces the company's existing senior revolver and term loan.

The company also announced that it completed the sale of its M.V.I. and Aquasol product businesses for $105 million to Mayne Pharma Inc. and made its $9.6 million April 1, 2004 interest payment and default interest payment on its 11% senior subordinated notes due in 2010.

"We have now achieved all of our major financing objectives for the company," said Gregory F. Rayburn, interim chief operating officer, in a company news release. "aaiPharma is now well positioned to execute its business plan."

"This completes the first phase of the program to allow aaiPharma to return to normal operations. I have given financial stability the highest priority since returning to the CEO position. Next, we need to focus on the remaining issues such as the filing of our form 10-K as quickly as possible," said Dr. Frederick D. Sancilio, chairman and chief executive officer, in the release.

"We are already beginning to focus our efforts on preparing plans for the remaining quarters of 2004 and 2005 that will be clearly communicated once completed. Our R&D program remains one of our most important assets and is the foundation of the company going forward."

aaiPharma is a Wilmington, N.C., science-based pharmaceutical company focused on pain management.

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