Replimune Group gets term loan agreement for up to $200 million

By Mary-Katherine Stinson

Lexington, Ky., Oct. 7 – Replimune Group, Inc. and certain of its subsidiaries entered a loan and security agreement on Oct. 6 with Hercules Capital, Inc. as administrative agent providing term loans up to $200 million under multiple tranches, according to an 8-K filing with the Securities and Exchange Commission.

The term loans are available during specified time periods including $30 million at closing with an additional $30 million available on or prior to Sept. 30, 2023, up to $115 million available in advances upon the achievement of certain performance milestones and up to two advances of up to $25 million available on or prior to the end of the interest-only period.

Interest will be at the greater of 7.25% or Prime plus 175 basis points. Additionally, the term loan will have interest of 1.5% as payment in kind.

The interest-only period is 48 months after closing which may be extended to 54 months or the maturity date if performance milestones are achieved.

The facility matures Oct. 1, 2027.

According to financial covenants, beginning on the later of July 1, 2024 and the date on which the total outstanding principal amount of the facility at least $100 million, the company is required to satisfy one of the following: achieve a minimum amount of trailing three-month net product revenue tested on a monthly basis, maintain a market capitalization in excess of $1.2 billion and unrestricted cash in an amount at least 50% of the outstanding amount under the facility, or maintain unrestricted cash in an amount no less than 85% of the outstanding amount under the facility.

Proceeds will be used for working capital and general corporate purposes.

Replimune is a Woburn, Mass.-based clinical stage biotechnology company.

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