Angiotech Pharmaceuticals, Inc. announces financial results for the fourth quarter ended Decembe...(the write-down of goodwill of $599.4 mil...)

Date:3/5/2009

the write-down of goodwill of $599.4 million recorded in the third quarter of 2008, leaving no goodwill on our books as of December 31, 2008. - As of December 31, 2008, cash, short and long-term investments were $41.4 million and net debt was $535.2 million.

Significant Recent Developments

New Senior Secured Credit Facilities. On March 2, 2009 we announced that we had completed a financing transaction with Wells Fargo Foothill, LLC. The financing includes a delayed draw secured term loan facility of up to $10 million, and a secured revolving credit facility with a borrowing base derived from the value of certain of the Company's finished goods inventory and accounts receivable, providing up to an additional $22.5 million in available credit, subject to certain terms and conditions. Any borrowings outstanding under the term loan and revolving credit facility bear interest ranging from LIBOR + 3.25% to LIBOR +3.75%, with a minimum Base LIBOR Rate of 2.25%. The term loan and the revolving credit facility include certain covenants and restrictions with respect to our operations, require us to maintain certain levels of Adjusted EBITDA and interest coverage ratios, among other terms and conditions, and are secured by the assets of the Company and its Canadian and U.S. subsidiaries. The purpose of the financings is to provide additional liquidity and capital resources for working capital and general corporate purposes.

Financial and Strategic Alternatives Process. During approximately the last eight calendar quarters, our royalty revenue has declined significantly, primarily due to lower than expected royalties derived from sales by our partner Boston Scientific Corporation ("BSC") of TAXUS(R) coronary stent systems. This decline in royalty revenue has significantly impacted our ability to fund our operations and service our debt obligations, and has impacted our liquidity position. During
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SOURCE Angiotech Pharmaceuticals, Inc. Copyright©2009 PR Newswire. All rights reserved

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