Soleno Therapeutics, a clinical-stage biopharmaceutical company developing therapeutics for the treatment of rare diseases, entered into a loan and security agreement with Oxford Finance and its affiliates for up to $200 million.
“This financing significantly strengthens our financial position, providing additional support for anticipated commercial launch activities,” Anish Bhatnagar, CEO of Soleno, said.
Under the terms of the agreement with Oxford, Soleno drew an initial $50 million at closing. $100 million will be available in three additional tranches, contingent upon U.S. Food and Drug Administration (FDA) approval of DCCR (diazoxide choline) extended-release tablets for the treatment of Prader-Willi syndrome (PWS) and certain commercial milestones. The final $50 million may be made available upon the mutual consent of Soleno and Oxford.
The loan carries an interest-only period of 48 months and a total term of 60 months; provided that if specific milestones are achieved prior to September 30, 2026, the interest-only period and maturity date will be extended by 12 months. The term loans accrue interest at a floating rate equal to, subject to certain conditions, (a) 1-month term SOFR plus (b) 5.50%.
