Arcus Biosciences signs up to $250 million secured term loan with Hercules Capital
Arcus Biosciences entered a Loan and Security Agreement with Hercules Capital on August 27, 2024, providing a secured term loan facility of up to $250.0 million. Only $50.0 million was funded at closing, with the rest available under later tranches at the company's option or the lenders' option, and the loans are secured by substantially all company assets.
- $50.0 million funded on August 27, 2024; up to $150.0 million more available at the company's option through March 15, 2026, and a further $100.0 million at the lenders' option
- Interest at the greater of Prime Rate plus 1.95% or 10.45%; interest-only payments until September 1, 2028; maturity September 1, 2029
- Financial covenant requires Qualified Cash of at least 50% of outstanding principal when market capitalization is at or below $1.20 billion, with reductions upon milestones