Aveo closes tranched $35 million debt facility with Hercules Capital

By Taylor Fox

New York, Aug. 10 – Aveo Oncology closed a tranched $35 million debt facility with Hercules Capital, Inc. and its affiliates, according to a news release.

The new facility has a maturity of 36 months, extendable up to 48 months, and an interest-only period of 12 months, extendable up to 30 months, upon the achievement of performance milestones related to the approval and commercialization of tivozanib.

Under the terms of the agreement, the initial tranche of $15 million fully refinanced Aveo’s existing Hercules term loan facility, which had an outstanding principal amount of approximately $9.7 million, providing net new proceeds of $5.3 million.

A second $10 million tranche is contingent upon the approval of the tivozanib new drug application by the U.S. Food and Drug Administration as a treatment for renal cell carcinoma, and certain other terms and conditions.

An additional two $5 million tranches will become available after that time, one if product revenues from net sales of tivozanib reach $20 million within a specified time frame and the other at the lender’s consent.

Aveo is developing an oncology pipeline based in Cambridge, Mass.

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