Blog

Loan of the Week Snapshot #121

$180.0 million multi-tranche structured term loan facility provided by Innovatus Life Sciences and Oxford Finance

đź‘“At a Glance

Borrower: Celcuity, Inc.

Lender: Innovatus Life Sciences (Collateral Agent); Oxford Finance LLC (Lender)

Deal Size: $180 million

Structure: Multi-tranche structured term loan

Use of Proceeds: Refinance existing outstanding credit plus accrued PIK interest

Source: Press Release

đź“·Borrower Snapshot

Sector: Health Care

Subsector: Pharmaceuticals

Ownership: Public

Commercial Stage: Pre-revenue

Business Overview: Celcuity is a clinical-stage biotechnology company focused on development of targeted therapies for treatment of multiple solid tumor indications. The company’s lead therapeutic candidate is gedatolisib, a potent, pan-PI3K and mTOR inhibitor. Its mechanism of action and pharmacokinetic properties are highly differentiated from other currently approved and investigational therapies that target PI3K or mTOR alone or together.

⚙️Structure & Terms

Source: SEC 10-Q

Commitment Amount: $180.0 million

  • Term Loan A: $16.8 million (funded at close)
  • Term Loan B: $21.5 million (funded at close)
  • Term Loan C: $61.7 million (funded at close)
  • Term Loan D: $30.0 million (subject to milestone)
  • Term Loan E: $50.0 million (subject to milestone)
  • Term Loan F: $45.0 million (excluded from commitment total and subject to Lenders’ discretion)

Milestones:

  • Term Loan D: Positive Data in the Wildtype patient population from Gedatolisib’s
  • VIKTORIA-1 trial relativeto Study 1 Arm C (fulvestrant) with an Acceptable Safety Profile
  • Term Loan E: Received FDA approval for Gedatolisib in 2nd line advanced breast cancer patients (wild-type – i.e. not subject to a specific genetic mutation) post CDK4/6 inhibitor therapy

Interest-only Period: July 1, 2027 (~36 months) if I/O extension event doesn’t occur, July 1, 2028 (~48 months) if I/O extension event does occur.

Maturity: May 1, 2029

Rate: Variable - greater of Prime Rate or 7.75% plus 2.85%; 1% PIK through May 31, 2027

Fees:

  • Facility Fee - due on funding date of Term Loan C, Term Loan D, Term Loan E, and Term Loan F
  • Final Payment - 4.50%
  • Non-Utilization Fee
    • $900 thousand if company fails to draw full amount of Term Loan D and doesn’t notify the Agent after 4 weeks of achieving the milestone
    • $1.5 million if the company fails to draw the full amount of Term Loan E and doesn’t notify the Agent after 4 weeks of achieving the milestone
  • Prepayment Fee
    • prior to 18 month anniversary - 3.0%, >18-30 months - 2%; >30- 42 month - 1.0%; >42 - 0%

Covenants:

  • Minimum Liquidity
    • Unrestricted cash balance not less than 30% of outstanding balance of Term Loans
      • increasing to 50% if Term Loan D Milestone is not achieved
      • decreasing to 25% if Term Loan E Milestone is achieved

‍

Ready to take the next step?

Discuss your debt capital formation needs with our experts.
Let’s build your capital planning strategy together.
Book a call