Silicon Valley Bank’s German branch provided immuno-oncology company Affimed with up to $30.42 million (€25 million) in term loans for debt financing.
“We are pleased to continue our relationship with Silicon Valley Bank,” Angus Smith, CFO of Affimed, said. “This financing will help support the broad development strategy for our ICE molecules as monotherapies and in combination with natural killer cells and checkpoint inhibitors.”
“We’re delighted to continue our support for Affimed and its mission to develop cancer treatments using its proprietary ICE platform,” Nooman Haque, head of life sciences and healthcare SVB EMEA, said. “For decades SVB has worked with leading life sciences companies to improve their chances of success.”
“The completion of this transaction is another important milestone in the continuing growth of SVB’s activities in Germany and we’re proud to continue our relationship with one of the landmark biopharma companies in the market,” Oscar Jazdowski, general manager of SVB’s German branch, said.
Pursuant to the terms of the agreement, Silicon Valley Bank will make loans of up to $30.42 million (€25 million) available in three tranches: $12.16 million (€10 million) available at closing; an additional $9.12 million (€7.5 million) upon the achievement of certain conditions, including milestones related to Affimed’s pipeline and market capitalization; and a third tranche of $9.12 million (€7.5 million) upon the achievement of certain additional conditions related to Affimed’s pipeline and liquidity.
The loans will bear interest at the greater of the European Central Bank Base Rate and 0%, plus 5.5%, and Affimed is entitled to make interest only payments through Dec. 1, 2022, or June 1, 2023, if Affimed draws on the third tranche of the loans. The loans will mature at the end of November 2025. There are no financial covenants in the agreement. Proceeds will be used to fund research and development expenses for Affimed’s expanding pipeline and for working capital purposes.
