Mustang Bio inks $75 million loan and security agreement with Runway

Chicago, March 8 – Mustang Bio, Inc. signed a $75 million loan and security agreement with Runway Growth Finance Corp. on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The company received $30 million of the loan on Friday with the other $45 million fundable if Mustang achieves certain predetermined milestone.

Each loan will mature on April 15, 2027.

Starting March 15, Mustang will make only interest payments. However, starting either April 1, 2024 or April 1, 2025, depending on whether Mustang has achieved certain predetermined milestones, monthly amortization payments start.

The loan will accrue interest at 8.75% plus the greater of 50 basis points or Libor, with a 9.25% interest rate floor.

There is a prepayment penalty of all outstanding principal and interest due, plus a prepayment fee, a final payment and all other sums due including interest at the default rate.

Runway was issued a warrant to purchase 748,036 shares of Mustang’s common stock at an exercise price of $0.8021 exercisable for 10 years from the date of issuance.

Proceeds from the loan are being used to support the ongoing clinical development of key investigational product candidates in Mustang's pipeline and for general working capital purposes.

Mustang Bio is a clinical-stage biopharmaceutical company based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.