Correvio Pharma (CORV)

[surf1944]

8:54AM Cardiome announces settlement of debt and termination of line of credit with Merck (MRK) (CRME) 0.44 +0.45 : Co announced it has made the final payment to Merck, known as MSD outside the United States and Canada, of $13 million (currency in U.S. dollars) which has been accepted by Merck as full and final settlement of all amounts owing under the line of credit stemming from the companies' collaboration and license agreement for vernakalant, signed in April 2009.

Under the terms of the December 10, 2012, settlement agreement between the companies, upon payment of $20 million by Cardiome to Merck on or before March 31, 2013, Cardiome's outstanding debt of $50 million owed to Merck would be settled.

Previously, Cardiome made an initial payment of $7 million to Merck. Today's final payment of $13 million concludes Cardiome's total payment of $20 million to Merck and consequently terminates the credit facility and releases and discharges the collateral security Merck had taken in respect of the advances under the line of credit.