Hercules Technology Growth Capital has provided a term loan facility of up to $45 million to biopharmaceutical firm Anacor Pharmaceuticals.
Anacor specialises in developing and commercialising novel small-molecule therapeutics.
The overall $45 million loan is split into three tranches: an initial $30 million facility which has already been drawn down (22.6 million was used to repay previos facilities with Oxford Finance and Horizon Technology Finance Corporation); a second tranche of $15 million which will available at Anacor’s discretion from 5 December; and a final $5 million tranche available on confirmation of the US Food and Drug Administration’s approval of the company’s latest drug application, likely to be in mid-December.
Geoff Parker, chief financial officer of Anacor Pharmaceuticals believes the funding will give the firm additional financial flexibility.
Terms and conditions for the committed term loan facility include bearing interest at a calculated prime-based variable rate of between 11.65 percent and 14.90 percent. In connection with the loan agreement, Anacor issued warrants to Hercules, which are exercisable for 528,375 shares of common stock at a per share exercise price of $5.11.
Hercules has invested $3.6 billion in more than 230 companies.
“With its boron chemistry platform and resultant pipeline of novel drug candidates, Anacor has the potential to address a number of difficult to treat conditions,” added Chad Norman, managing director at Hercules.