Immunogen enters $175 million two-tranche term loan with Pharmakon

By Marisa Wong

Los Angeles, April 6 – ImmunoGen, Inc. announced it entered into a term loan financing facility for up to $175 million with entities managed by Pharmakon Advisors, LP, according to a press release.

Under the terms of the agreement, the loan facility will be available in two tranches. The initial tranche of $75 million will be drawn upon execution; the second tranche of $50 million will be available at the company’s option upon achievement of positive top-line data from its confirmatory Mirasol trial and a net sales threshold for Elahere. The second tranche may be increased to $100 million upon mutual agreement of the parties.

The facility will mature five years from initial funding; payments will be interest-only during the first 36 months, with an extension of 12 months if certain conditions are met, after which ratable principal payments will commence for the remainder of the loan.

Interest will accrue at SOFR, subject to a 2.75% floor, plus 800 basis points.

Goldman Sachs & Co. LLC was financial advisor to ImmunoGen on the transaction.

Proceeds from the agreement will strengthen ImmunoGen’s balance sheet and provide the company with additional capital to support its growth trajectory.

ImmunoGen develops antibody-drug conjugates for the treatment of cancer. The company is based in Waltham, Mass.

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