Eiger BioPharmaceuticals gets term loan agreement for up to $75 million

By Wendy Van Sickle

Columbus, Ohio, June 7 – Eiger BioPharmaceuticals, Inc. entered into a term loan agreement with an affiliate of Innovatus Capital Partners, LLC for up to $75 million, according to a news release Tuesday.

This loan facility and concurrent $5 million stock sale provide for the refinancing of the company’s existing debt and will support the continued development and commercialization of Eiger’s late-stage pipeline.

Following the closings of both the term loan agreement and stock purchase agreement, Eiger retained about $11 million of net proceeds. Eiger drew $40 million and used $33.5 million to retire its existing debt facility from Oxford Finance. Principal payments on the Oxford facility were due to begin on Sept. 1, 2022.

Eiger has access to up to an additional $35 million over two tranches, with the availability of both tranches based on regulatory and clinical milestones. The loan carries an interest-only period of 60 months and a total term of 63 months.

Interest is based on a floating rate, up to 2.25% of which can be payable in-kind until the third anniversary of the closing date of the term loan agreement.

The biopharmaceutical company is based in Palo Alto, Calif.

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