EyePoint says it maintains a ‘de minimis’ amount of cash with SVB

In a regulatory filing, EyePoint Pharmaceuticals (EYPT) said it currently maintains a de minimis amount of cash, in the single digit millions of U.S. dollars, with Silicon Valley Bank (SIVB). The vast majority of the company’s cash and cash equivalents and investments, resides in custodial accounts held by U.S. Bank for which SVB Asset Management is the advisor. As previously disclosed, on March 9, 2022, the company entered into a loan and security agreement among the company, as borrower, and SVB, as lender, providing for a senior secured term loan facility of $30M and a senior secured revolving credit facility of up to $15M. The maximum amount available for borrowing at any time under the Revolving Facility is limited to a borrowing base valuation of our eligible accounts receivable. At this time the company is evaluating future accessibility to the Revolving Facility due to SVB moving into receivership. The company is currently, and at all times have been, in full compliance with the SVB Loan Agreement, including all financial covenants. The Company reaffirms its estimate that its cash, cash equivalents, available for sale securities and committed loan facilities combined with net cash proceeds from its commercial business will be sufficient to fund its planned capital expenditure requirements, debt service obligations and operating expenses into the second half of 2024.