Shares of Lifecore Biomedical
LFCR,
on Monday climbed 19% to $6.40 in after-hours trading after the company said it secured a new $150 million financing agreement with its long-term customer Alcon
ALC,
Through the deal, the manufacturer of clinical and commercial sterile injectable drug products will increase the amount of hyaluronic acid product it delivers to Alcon at Lifecore’s existing facilities.
The agreement includes a six-year senior secured term facility and a sale leaseback of hyaluronic acid fermentation equipment, Lifecore Biomedical said.
“The closing of the new credit arrangement and equipment sale and leaseback provides for the repayment of our current term loan agreement with more favorable terms and greater flexibility,” Chief Executive James G. Hall said.
This story originally appeared on Marketwatch
