Deltagen Inc. said Monday it signed two financing agreements - one providing a $20 million term loan and the second an arrangement for a one-year $5 million accounts receivable loan.

"It gives us the opportunity to use these monies toward the completion of our research facilities in Redwood City [Calif.], as well as other key general corporate purposes," said Deltagen Vice President of Communications Paul Laland.

The research facility is scheduled to be 100,000 square feet and operational by year's end, Laland said.

The amount of the term loan will be available through March 31, 2003, although Deltagen borrowed $10 million (at an interest rate of about 6.1 percent) through this arrangement Friday to pay off $730,000 in outstanding equipment loans. The loan, which matures on March 31, 2007, is secured by an interest in Deltagen's assets, excluding intellectual property, Deltagen said.

The loan stipulates that Deltagen, which is headquartered in Redwood City, maintain unrestricted cash balances equal to the greater of two times the principal balance outstanding on the loan, or six months of net cash used in operating activities, the company said.

In May, Deltagen completed a private placement, raising $25.3 million to be used to advance its internal drug discovery efforts. The company had $50 million in cash as of March 31, but the private placement pushed that to about $85 million.

In February, Deltagen bought Bristol-Myers Squibb Pharma Research Labs LLC for $23.5 million in stock, giving Deltagen a small-molecule drug discovery unit that will function as a wholly owned subsidiary in San Diego. (See BioWorld Today, Feb. 12, 2002.)

Last October, Deltagen entered a research and development deal with Hyseq Inc., of Sunnyvale, Calif., to work on about 200 secreted proteins provided by Hyseq. Hyseq was to pay Deltagen about $10 million in research and development payments over two years, and Deltagen was to receive $10 million in equity proceeds from the sale of about 1.5 million shares to George Rathmann, Hyseq's chairman.

"We're very pleased with all of our collaborators at this time," Laland said.

Deltagen's stock (NASDAQ:DGEN) rose 15 cents Monday to close at $2.60.