Phathom expands existing loan, security agreement with Hercules Capital

Phathom Pharmaceuticals (PHAT) announced an amendment to its term loan facility from Hercules Capital (HTGC). Sagard Healthcare is also participating in the term loan facility. The amendment increases the total term loan facility up to $300M with more favorable terms, including the extension of the interest-only period and maturity date from October 1, 2026, to December 1, 2027. Phathom has drawn $40M upon the closing of the amendment, aggregating to $140M currently outstanding under the expanded loan facility. Phathom has estimated the amended terms result in cash savings of approximately $20M based upon the original maturity date of the loan and $200M in advances. Under the terms of the amendment, the remaining $160M of the aggregate $300M loan facility is potentially available in five tranches. A tranche of $10M is available through March 15, 2024, and the following two tranches of $25M each are available to be drawn through June 15, 2024, and December 15, 2024, respectively. The final two tranches of $50M each will be available, subject to the achievement of certain revenue milestones through June 30, 2025, and December 31, 2025, respectively.