Solar Capital Partners provided a $75 million term loan through a loan and security agreement with Rubius Therapeutics, a biotechnology company developing a new class of allogeneic cellular therapies.
The loan will be funded in three tranches of $25 million each, with the first tranche funded as of December 21, 2018, and the remaining tranches funded at the company’s election, subject to satisfaction of certain requirements.
The proceeds will be used to advance Rubius’ pipeline of Red Cell Therapeutics and for general corporate purposes, further extending the company’s cash runway into 2021.
“This flexible, non-dilutive financing strengthens our financial position and supports our key therapeutic programs advancing towards clinical trials,” said Pablo J. Cagnoni, M.D., Rubius Therapeutics CEO. “We look forward to partnering with Solar Capital Partners, a leader in the life sciences lending business.”
Payments under the loan are interest only for 36 months, followed by 24 months of principal and interest through the scheduled maturity date of December 21, 2023.
“We are excited to partner with the Rubius team as they develop this potentially disruptive new therapeutic platform,” said Anthony Storino, head of the life science lending business at Solar Capital.
