TScan Therapeutics, a clinical-stage biotechnology company, entered into a term loan facility with Silicon Valley Bank (SVB), a division of First Citizens Bank, for up to $52.5 million. The first tranche of $32.5 million, advanced at loan closing, will be used to retire the existing convertible debt with K2 Health Ventures and the remainder for general corporate purposes.
TScan has the option through June 30, 2026 to draw the second $20.0 million tranche, subject to certain conditions and mutual agreement of TScan and SVB. Borrowings under the term loan facility will bear interest at an annual rate equal to the greater of 7.00%, or the prime rate minus 0.75%, subject to an interest rate cap of 9.75%. The term loans will mature on Sept. 1, 2029, and will be subject to monthly interest-only payments until September 30, 2027, provided the company achieves certain financial and clinical milestones, otherwise the term loans will mature on Sept. 1, 2028, and the interest-only period will be through September 30, 2026.
“We’re pleased to enter into this non-dilutive agreement with SVB which allows us to significantly extend the interest-only period and maturity of our debt financing, providing TScan with added financial flexibility and liquidity,” Jason A. Amello, chief financial officer of TScan, said. “With this refinancing, we continue to expect our cash resources to fund our current operating plan into the fourth quarter of 2026. We’re looking forward to working with SVB as we deliver on our critical milestones, advance our mission to bring our potential therapies to patients with cancer and enhance shareholder value.”
“We’re excited to partner with TScan as they advance their innovative hematology and solid tumor programs,” Lauren Cole, managing director with SVB Life Science and Healthcare Practice, said. “Silicon Valley Bank is thrilled to provide TScan with this refinancing to support their ongoing development efforts to positively impact patients’ lives.”
