Phathom Pharmaceuticals raises loan with Hercules to $300 million

Chicago, Dec. 14 – Phathom Pharmaceuticals, Inc. increased its loan and security agreement with Hercules Capital, Inc. to $300 million through a fourth amendment on Dec. 14, according to an 8-K filing with the Securities and Exchange Commission.

The increase is $100 million over the previous $200 million term loan size.

The amendment provides the possibility of accessing the $160 million of currently undrawn commitments through five additional tranches, subject to certain milestones and conditions.

Tranche two in the amount of $50 million is available through March 15, 2024, and $40 million was drawn at closing.

A $25 million tranche three is available through June 15, 2024. Tranche four in the amount of $25 million is available through Dec. 15, 2024. Tranche five for $50 million may be drawn through June 30, 2025, based on the achievement of s specified revenue milestone. Tranche six is also available based on the achievement of a specified revenue milestone; the $50 million is available through Dec. 31, 2025.

The interest-only period and the maturity date have been extended to December 2027, from October 2026.

The cash interest rate is reduced to 9.85%, currently based on the Prime rate plus 135 basis points (capped at 10.35%). Cash interest will be decreased another 35 bps if certain milestones are met. The payment-in-kind interest rate has been reduced to 2.15% from 3.35%.

A $250,000 closing fee was payable at closing.

Hercules is the administrative agent, collateral agent and lender.

Florham Park, N.J.-based Phathom is a biopharmaceutical company committed to transforming the treatment landscape and improving the lives of patients suffering from acid-related gastrointestinal disorders.

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