Foundation Medicine lifts facility to $200 million, extends draw time

By Wendy Van Sickle

Columbus, Ohio, Aug. 1 – Foundation Medicine, Inc. entered Monday into an amendment to its Aug. 2, 2016 credit agreement with Roche Finance Ltd. that doubled the amount which it can draw to up to $200 million and extended the draw period by one year to Aug. 2, 2020, according to an 8-K filing with the Securities and Exchange Commission.

Under the amended agreement, $80 million is available to the company immediately, $70 million will be available upon the achievement of certain milestones and $50 million will be available on the achievement of some additional milestones.

During the draw period and for six months thereafter, the company will pay Roche quarterly a commitment fee of 0.4% of the credit facility. Loans bear interest at 6.5% per annum, increased from 5% before the amendment.

Foundation Medicine will pay Roche quarterly accrued interest on the outstanding principal of the loans during the draw period, and for five years thereafter the company will pay quarterly payments of principal, with accrued interest, until the credit facility matures on Feb. 2, 2026.

Proceeds are to be used for product development and commercialization, corporate development and working capital management.

The credit facility is secured by a lien on all of the company’s tangible and intangible personal property.

Based in Cambridge, Mass., Foundation Medicine develops clinical products to treat cancer. Roche is an affiliate of Roche Holdings, Inc., Foundation Medicine’s majority stockholder.

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