XOMA, a pioneer in the discovery, development and licensing of therapeutic antibodies, entered into a flexible $20 million credit facility with Silicon Valley Bank, with availability through March 2019.
“This credit facility gives us the option to access capital quickly as needed to capitalize on opportunities to expand our portfolio of partner-funded programs. We are seeing an increasing flow of opportunities to acquire potential milestone and royalty revenue streams on additional assets,” stated Tom Burns, CFO of XOMA.
Should XOMA draw advances from the credit facility, it will pay a floating per annum interest rate equal to the greater of 4.75% or the Wall Street Journal Prime Rate plus 0.25%. For the initial 12-month period, payments under the credit facility are interest only, followed by 24 monthly payments of principal and interest
The term loan commitment may be extended to March 2020 upon certain conditions and includes the opportunity to increase the borrowing capacity to an aggregate amount of $40 million.
