Selecta Biosciences entered into a term loan facility for up to $21 million with Silicon Valley Bank, the proceeds of which will be used to repay the company’s existing term loan facility and for general corporate and working capital purposes.

The new term loan matures on February 1, 2022. Each advance loan accrues interest at a floating per annum rate equal to one-half of 1% above the prime rate. It provides for interest-only payments on a monthly basis until August 31, 2019.

The new term loan is secured by a lien on substantially all of the assets of the company, other than intellectual property, provided that such lien on substantially all assets includes any rights to payments and proceeds from the sale, licensing or disposition of intellectual property.

On the funding date, Selecta utilized approximately $10 million of the term loan to pay off all obligations owing under, and to terminate its amended and restated loan and security agreement with Oxford Finance as collateral agent and lender, and Pacific Western Bank as a lender. This prior agreement had an aggregate principal amount of $12 million.