According to an 8-K filing, MidCap Financial Trust served as administrative agent and lender on a $100 million secured loan facility for BioCryst Pharmaceuticals.

The facility will be available in three tranches, with the first tranche comprised of $50 million funded at closing, including $30 million in proceeds rolled over from the outstanding principal amount under the company’s previous credit agreement with MidCap. The second tranche will be comprised of $30 million and the third tranche of $20 million, both funded upon the completion of certain contingencies related to the company’s development activities of its product candidates and the establishment of certain financial covenants.

BioCryst will initially make interest-only payments, with principal payments for 30 months commencing on July 1, 2020. The interest rate will be a variable interest rate (initially 10.5%), based on an 8% margin plus the one-month LIBOR with a LIBOR floor of 0.5%.

The funding of the second tranche is conditioned upon BioCryst issuing a public announcement of data which meets the primary endpoint on at least one dose level in the APeX-2 Phase 3 trial for BCX7353 sufficient for filing a new drug application with the FDA. The funding of the third tranche is conditioned upon receiving FDA approval of BCX7353.

All unpaid principal and accrued interest will be due and payable in full no later than December 1, 2022.

The obligations of the BioCryst under the credit agreement were secured by a first priority lien in favor of MidCap on substantially all of its and its subsidiaries’ existing and after-acquired assets.

BioCryst Pharmaceuticals is a biotechnology company which designs, optimizes and develops small molecule drugs that block enzymes involved in the pathogenesis of diseases. It focuses on the treatment of rare diseases, and its drug candidates include RAPIVAB, RAPIACTA, PERAMIFLU, Avoralstat, BCX7353 and other second generation hereditary angioedema compounds.