TESARO, an oncology-focused biopharmaceutical company, entered into a definitive term loan agreement with BioPharma Credit and BioPharma Credit Investments IV, investment funds managed by Pharmakon Advisors.
The loan facility will provide up to $500 million in borrowing capacity available in two tranches. The first $300 million will likely be drawn at an initial closing in early December 2017, with an additional tranche of up to $200 million available for draw at TESARO’s discretion until December 20, 2018. The loans will mature in December 2024.
“This non-dilutive debt facility provides TESARO sufficient funding with favorable terms as we enter into a period of expected substantial revenue generation,” said Lonnie Moulder, CEO of TESARO.
“We are pleased to partner with Tesaro in this transaction,” said Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors. “We believe that TESARO is well on its way to becoming an oncology leader with an excellent management team and an exciting clinical development program that could one day offer patients new immuno-oncology therapies.”