JPMorgan Chase Bank acted as administrative agent with a syndicate of three relationship banks on the closing of a $150 million senior secured revolving credit facility for global oncology company Novocure.

Novocure may, subject to certain conditions and limitations, increase the revolving credit commitments outstanding under the revolving credit facility or incur new incremental term loans in an aggregate principal amount not to exceed an additional $100 million.

“With readouts from key clinical trials in multiple indications anticipated over the next few years, we are actively working to ensure organizational readiness in anticipation of future growth,” William Doyle, executive chairman at Novocure, said. “We believe the changes we’ve made to our capital structure, coupled with the profitability of our existing commercial business, position us well to sustain long-term growth and maximize shareholder value as we work to extend survival in some of the most aggressive forms of cancer.”

The obligations under the revolving credit facility are guaranteed by certain of the company’s subsidiaries and secured by a first lien on Novocure’s and certain of its subsidiaries’ assets. Outstanding loans will bear interest at a sliding scale based on Novocure’s secured leverage ratio from LIBOR plus 2.75% to LIBOR plus 3.25% per annum. Additionally, the facility contains a fee for the unused revolving credit commitments at a sliding scale based on Novocure’s secured leverage ratio from 0.35% to 0.45%. At closing, the company had no outstanding balance borrowed under the facility.

“We believe recent financing transactions create financial flexibility in our capital structure to support ongoing investments intended to drive near-term growth and unlock future value at an extremely favorable cost of capital,” Ashley Cordova, CFO at Novocure, said. “Beyond investments in our clinical and product development programs, this growth capital enables us to strengthen our commercial footprint by expanding access to our approved indications into additional markets and to invest in pre-commercial and commercial activities associated with the potential for a simultaneous launch of multiple large indications.”