Halozyme Therapeutics entered into an agreement with Oxford Finance and Silicon Valley Bank to refinance its existing senior secured loan facility.

Under the new financing agreement, Halozyme borrowed $55 million at a fixed rate of 8.25% and used the proceeds to refinance its existing long-term debt. The new facility provides for interest-only payments for the first 18 months followed by consecutive monthly payments of principal and interest until maturity on January 1, 2021. The agreement will result in a $22 million per-year increase to the company’s expected cash balance at the end of 2016 and 2017. The new loan facility also provides Halozyme the option to borrow an additional $15 million during the second quarter of 2017 at a fixed interest rate equal to then-current prime rate plus 4.75%.

As a result of the refinancing, Halozyme raised its previously announced cash balance guidance, now expecting a year-end cash balance of $170 million to $190 million, an increase from the prior range of $150 million to $170 million.

Halozyme Therapeutics is a biotechnology company focused on developing and commercializing novel oncology therapies that target the tumor microenvironment.