Daily News: March 28, 2013

Hercules Tech Closed a $15MM Term Loan for Cell Therapeutics


Cell Therapeutics (CTI) announced it entered into a loan agreement with Hercules Technology Growth Capital providing for a senior secured term loan of up to $15 million.

“The proceeds from this loan facility are expected to provide us with additional operating capital to advance our Phase 3 clinical development programs,” said James A. Bianco, M.D., president and CEO of CTI. “Our primary focus remains on our near-term strategic goals of completing the Phase 3 studies of pacritinib in patients with myelofibrosis, driving adoption of PIXUVRI in Europe and securing non-equity based operating capital through strategic partnerships.”

The first $10 million of the term loan was funded at closing, and the remaining $5 million is available at CTI’s option at any time from November 30 through December 15, 2013, subject to the satisfaction of certain conditions.

The term loan is repayable over 42 months after closing, including an initial interest-only period of 12 months after closing. CTI granted Hercules warrants to purchase shares of common stock in an amount of up to 5 percent of the total loan commitment.

Seattle, WA-based Cell Therapeutics is a biopharmaceutical company committed to the development and commercialization of an integrated portfolio of oncology products aimed at making cancer more treatable.

Hercules Technology Growth Capital is a specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science and clean-tech industries at all stages of development.