Urovant enters $100 million debt facility via Hercules Capital

By Wendy Van Sickle

Columbus, Ohio, Feb. 22 – Urovant Sciences said it entered into a $100 million debt financing facility with Hercules Capital, Inc.

Urovant drew down $15 million from the debt facility at closing. The remaining $85 million is available in three optional tranches through June 30, 2021, subject to some terms and conditions, including the achievement of certain milestones, according to a news release.

At the closing of each tranche, Urovant will issue warrants to Hercules to purchase a number of common shares of Urovant equal to 2% of the loan amount funded, divided by an exercise price set at the closing price on the business day before funding, or at the lower of $9.02 for the first and second tranche.

The term loans bear interest rate equal to the greater of 10.15% or 10.15% plus the prime rate minus 550 basis points with a ceiling of 12.15%.

The term loan matures 36 months from closing, with an option for a 12- to 18-month extension, subject to certain milestones.

Urovant’s obligations are secured by a first priority security interest on substantially all of its personal property except intellectual property and some other exceptions.

Irvine, Calif.-based Urovant Sciences is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapies for urologic conditions.

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