Neurocrine Biosciences Enters $108 Million Sale Leaseback of San Diego HQ

Neurocrine Biosciences Web Site - November 1, 2007

Neurocrine Biosciences, Inc. (Nasdaq: NBIX) announced today that the Company has entered into a sale and leaseback agreement with Veralliance Properties for its real estate assets, with an expected closing date before year-end 2007. Total consideration to be received by Neurocrine for the properties is $108 million. Concurrently with the closing of the transaction, Neurocrine will lease back its corporate headquarters under a lease with a 10 year term. Neurocrine has certain options to repurchase all of the properties included in the transaction during the term of the lease. Under the terms of the asset purchase agreement, Neurocrine anticipates that it will receive cash of approximately $60 million net of fees, expenses and existing indebtedness.

"Owning the properties that Neurocrine occupies has been a highly profitable strategy for the Company and our shareholders, allowing us to benefit from the appreciation in the San Diego commercial real estate market," said Timothy P. Coughlin, Vice President and Chief Financial Officer of Neurocrine Biosciences. "Improving our strong financial position at this time in a non-dilutive manner provides us with the financial flexibility to advance our clinical and research programs and build equity in our pipeline."

Neurocrine Biosciences, Inc. is a product-based biopharmaceutical company focused on neurological and endocrine diseases and disorders. The product candidates address some of the largest pharmaceutical markets in the world including insomnia, anxiety, depression, endometriosis, irritable bowel syndrome, pain, and diabetes.

(NOTE: According to the just released 10-Q report, the property was sold at a 7.0% cap rate with 3% annual rental increases, subject to a 10 year net lease with landlord roof & structure risk. The purchase option is at the greater of market or the then escallated base rent capped at 6.75%.) Sphere: Related Content