Nabriva gets $75 million term loan to be drawn in six tranches

By Susanna Moon

Chicago, Dec. 21 – Nabriva Therapeutics AG obtained a $75 million term loan on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The loan agreement provides for an initial term loan advance of $25 million, which was funded at closing, and five additional term loan advances of $10 million for the tranche 2 advance, $5 million for the tranche 3 advance, $10 million for the tranche 4 advance, $15 million for the tranche 5 advance and $5 million for the tranche 6 advance.

The tranche 2 advance will be available through Sept. 30, 2019 upon the approval by the U.S. Food and Drug Administration of a new drug application for lefamulin. The tranche 3 advance will be available through Sept. 30, 2019 upon the approval by the FDA of an NDA for Contepo. The tranche 4 advance will be available from Jan. 1, 2020 through Dec. 31, 2020 upon the approval by the FDA of NDAs for lefamulin and Contepo and upon the achievement of specified product revenue milestones. The tranche 5 advance will be available from July 1, 2020 through June 30, 2021 upon the approval by the FDA of NDAs for lefamulin and Contepo and upon the achievement of specified product revenue milestones. The tranche 6 advance will be available from Jan. 1, 2021 through Sept. 30, 2021 upon the approval by the FDA of NDAs for lefamulin and Contepo and upon the achievement of specified product revenue milestones. The borrowers may request a seventh term loan advance of $5 million before Dec. 31, 2021 subject to the lender’s discretion.

Interest on the term loan is the greater of 9.8% and 9.8% plus the prime rate of interest minus 550 basis points.

The loan agreement provides for interest-only payments through July 1, 2020, which may be incrementally extended from time to time upon the occurrence of certain conditions through Jan. 1, 2022 and repayment of the aggregate outstanding principal balance of the term loan after that in monthly installments through June 1, 2023.

The company paid a fee of $50,000 at closing and is required to pay a fee of 6.95% of the aggregate amount of advances under the loan agreement at maturity.

The borrowers may elect to prepay any portion of the outstanding term loan that is greater than or equal to $5 million by paying the portion of the principal balance and all accrued interest plus a prepayment charge equal to the percentage of the principal amount being prepaid: 3% if the term loan is prepaid during the first 12 months, 2% between 12 months and 24 months after closing and 1% after that.

The loan agreement also gives the lender or its nominee an option to purchase up to $2 million of the company’s equity securities, or instruments exercisable for or convertible into equity securities, sold to investors in any private financing upon the same terms and conditions afforded to the other investors for as long as there are amounts outstanding under the loan agreement.

The biopharmaceutical company is based in Vienna, Austria.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.