By Devika Patel
Knoxville, Tenn., Feb. 13 – Syros Pharmaceuticals, Inc. arranged a $60 million senior secured loan facility with Oxford Finance LLC on Feb. 12, according to a press release and an 8-K filed with the Securities and Exchange Commission.
The term loan provides Syros with up to $60 million in borrowing capacity in three tranches.
A $20 million tranche will be available immediately and two additional advances of $20 million each will be available under the agreement upon the company achieving certain milestones.
The loan is due in five years and bears interest at a rate equal to the greater of 7.75% and the sum of 598 basis points plus the greater of the one-month Libor rate and 177 bps.
The company may elect to prepay the loan with a prepayment fee ranging from 0.5% to 2%.
The company has issued five-year warrants to Oxford for 27,548 common shares, each exercisable at $7.26.
Syros expects to use proceeds from the financing to advance its lead product candidates SY-1425 and SY-5609, to advance its preclinical programs toward the potential nomination of its next development candidate by the end of 2021, as well as for general corporate purposes.
Syros Pharmaceuticals is a Cambridge, Mass-based biopharmaceutical company focused on the developing of medicines to control the expression of genes.
| Issuer: | Syros Pharmaceuticals, Inc.
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| Issue: | Senior secured loan facility
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| Amount: | $60 million
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| Maturity: | Feb. 1, 2025
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| Coupon: | The greater of 7.75% and the sum of 598 bps plus the greater of the one-month Libor rate and 177 bps
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| Call: | Yes, with prepayment fees ranging from 0.5% to 2%
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| Warrants: | For 27,548 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $7.26
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| Investor: | Oxford Finance LLC
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| Pricing date: | Feb. 12
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| Distribution: | Private placement
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