Lucira Health obtains $80 million in four-tranche debt facility

By Rebecca Melvin

Concord, N.H., Feb. 8 – Lucira Health Inc. entered into a loan and security agreement on Feb. 4, providing for up to $80 million of term loans available in four tranches, according to an 8-K filing with the Securities and Exchange Commission.

Hercules Capital Inc. is administrative agent, and Silicon Valley Bank is a lender.

The first tranche for $30 million was funded upon closing. The second tranche for up to an additional $20 million will become available upon request if certain milestones are met beginning Sept. 1, 2022 and on or prior to March 31, 2023. A third tranche for an additional $15 million will become available upon request if certain milestones are met on or prior to June 15, 2023, and a fourth tranche consisting of up to an additional $15 million will be available upon request and lender approval on or prior to March 15, 2024.

The term loans mature on Feb. 1, 2026, and borrowings will bear interest at the greater of 8.75% and the prime rate plus 550 basis points.

The loans are interest only through Sept. 1, 2024, which may be extended to Feb. 28, 2025 if specified conditions have been met. After the interest-only period, principal and related interest will be required in equal monthly installments through maturity.

They may be repaid in whole or in part through Feb. 4, 2023 with payment of a 3% prepayment premium, thereafter through Feb. 4, 2024 with a 2% prepayment premium, thereafter through Feb. 1, 2025 with a 1% prepayment premium and no prepayment premium after that.

An additional end-of-term charge of 5.25% of term loans advanced will be due upon prepayment or repayment.

Upon closing, the company issued to Hercules and Silicon Valley warrants for 59,642 shares of common stock, exercisable for seven years at a per-share exercise price equal to $5.03.

The Emeryville, Calif.-based medical technology company is focused on developing and commercializing innovative infectious disease test kits.

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