An affiliate of KKR signed a $170 million term loan agreement with Aimmune Therapeutics, a biopharmaceutical company developing treatments for potentially life-threatening food allergies.

The term loan is split into three tranches. $40 million dollars was funded at close, with $85 million to follow upon satisfaction of customary borrowing conditions and FDA approval of AR101, a treatment of peanut allergy in children and adolescents ages 4–17 years. $45 million will then follow at the company’s option in 2020 upon the satisfaction of certain borrowing conditions.

The loan can be prepaid at Aimmune’s discretion, at any time, subject to prepayment fees.

“The addition of the KKR loan financing to Aimmune’s capital resources is expected to fully fund the commercialization of AR101, an investigational biologic oral immunotherapy for the treatment of peanut allergy,” said Eric Bjerkholt, Aimmune chief financial officer. “In addition, this financing secures resources to support the continued advancement of our pipeline of additional food allergy treatments, including the Phase 2 trial of AR201 for egg allergy, which is anticipated to commence this year.”

For KKR, the investment is part of the firm’s Health Care Royalty and Income strategy, which is focused on providing non-dilutive capital to companies for which KKR can help reach scale and achieve strategic objectives.

“Aimmune is leading the way in meeting the critical, growing need to offer treatment to the millions of people affected by food allergies,” said Emily Janvey, M.D., head of Health Care Royalty and Income strategy at KKR. “We’re proud to help support Aimmune’s important work, especially as the company prepares to launch what could be the world’s first approved medical treatment for peanut allergy.”

KKR is a global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds.