Fusion Pharmaceuticals secures up to $75 million of term loans

By Wendy Van Sickle

Columbus, Ohio, April 4 – Fusion Pharmaceuticals Inc. entered into a loan and security agreement on Monday with Oxford Finance LLC as collateral agent providing for up to $75 million of term loans to be used for working capital and general corporate purposes, according to an 8-K filing with the Securities and Exchange Commission.

The term loan commitment is in three $25 million tranches, A, B and C.

The A loan was funded at $10 million at closing, with the rest available upon the company’s request on a one-time basis at any time prior to April 4, 2023. The term B facility is to be funded at the request of the company, subject to certain conditions being met, no later than June 30, 2023. Both of these term loans have a maturity date of April 1, 2027.

The term C loan is to be funded at the lender’s sole discretion.

Borrowings under all three parts bear interest at the greater of 8% and the sum of the greater of one-month Libor and 10 basis points plus 790 bps.

Fusion is permitted to make interest-only payments on any outstanding amount due under the term loans through June 1, 2025, after which time principal will also be repaid based on an amortization schedule.

The company must pay a final fee equal to 4% of the aggregate amount of the term loans funded on the earliest of the maturity date, the acceleration of the term loans and the prepayment of the term loans.

Based in Boston, Fusion Pharmaceuticals uses targeted alpha therapeutics to improve the safety of radiopharmaceuticals.

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