Shield Therapeutics secures $20 million debt facility via SWK

By Marisa Wong

Los Angeles, Sept. 28 – Shield Therapeutics plc secured a $20 million senior secured debt facility from life science-focused specialty finance company SWK, according to a press release.

The loan matures on Sept. 28, 2028.

For the first nine quarters, the interest-only period, interest will accrue at 925 basis points plus the greater of three-month CME term SOFR and 5%.

Shield is required to pay SQK a 1% origination fee and a final payment fee of 6%.

After the interest-only period, the company will be required to make quarterly payments of $1 million.

The agreement contains financial covenants relating to minimum revenue targets and minimum liquidity.

The debt financing, along with proceeds from an equity fundraising, will be used to further invest in U.S. commercial activities with the goal to accelerate the launch curve and increase the net sales price for Accrufer; provide additional working capital for the build-up of inventories and receivables; and allow the company to repay the outstanding balance of $5.7 million on its existing loan with shareholder AOP.

Shield is a U.K.-based commercial stage specialty pharmaceutical company.

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