Parnell Pharmaceuticals Holdings entered into a $20 million senior secured non-dilutive term loan agreement with SWK Holdings. The company intends to use the loan proceeds to repay the previously held $11 million term loan with MidCap Financial and to fund R&D programs, commercialization of its companion animal products in the U.S. and general company purposes.

The loan was fully funded at closing and has a 48-month term, being interest-only for the first 24 months with interest payable quarterly in arrears. There are no warrants or equity instruments associated with the loan.

Parnell’s CFO, Brad McCarthy, said, “We are very pleased to once again enter into a debt facility with SWK Holdings having worked successfully with them previously. As we have stated in previous public announcements, we believe debt financing is an effective, non-dilutive source of capital that supplements our increasing organic cash generation from rapidly growing revenues and judicious cost management. We believe this debt facility provides sufficient additional working capital to enable Parnell to transition to expected profitability in 2017.”

Overland Park, KS-based Parnell is a veterinary pharmaceutical company focused on developing, manufacturing and commercializing animal health solutions.