Savara, a clinical stage biopharmaceutical company focused on rare respiratory diseases, entered into a term loan agreement of $26.5 million with Silicon Valley Bank to replace its existing credit facility with the bank. The new facility represents a significant improvement in economic terms, including a lower interest rate compared to the existing loan rate and an initial 48-month interest only period.
“We are pleased to continue our partnership with Silicon Valley Bank as this strategic refinancing meaningfully reduces our cost of capital, strengthens our balance sheet and provides increased flexibility as we continue to advance the development program for our inhaled biologic, molgramostim nebulizer solution,” Matt Pauls, chair and CEO of Savara, said. “With a cash position of [approximately] $161 million at the end of 2021, we believe we are funded through 2025 – which is well beyond the anticipated top line read-out of IMPALA-2, our pivotal Phase 3 clinical trial of molgramostim in autoimmune pulmonary alveolar proteinosis.”
Under the terms of the agreement, $26.5 million was funded upon execution of the agreement, which will be used to repay Savara’s existing credit facility. The new credit facility bears an interest rate of the greater of prime minus 0.50% or 3% and has a maturity of five years. The initial 48 monthly payments will be interest only, followed by 12 monthly payments of principal and accrued interest. There are no warrants in connection with the agreement.
