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Hercules Capital Closes $20MM Refi for AVEO Oncology

January 03, 2018, 08:00 AM
Filed Under: Medical

AVEO Oncology announced that it has completed the refinancing of its existing $20.0 million debt facility with Hercules Capital, Inc. and its affiliates, the terms of which enable approximately an additional $12.1 million in cash flow over 2018 and 2019, when compared to the prior loan. The new $20.0 million facility has a 42-month maturity from closing, no financial covenants, a lower interest rate and an interest-only period of no less than 12 months, which could be extended up to a maximum of 24 months, assuming the achievement of specified milestones relating to the development of tivozanib. Proceeds of the new facility will be used to retire the Company’s existing $20.0 million of secured debt with Hercules.

“We estimate that the extension of the interest-only period related to the restructuring of our debt facility with Hercules would extend our cash runway into 2019,” said Michael Bailey, president and chief executive officer of AVEO. “We continue to look forward to several potential key developments, including the receipt of top-line results from the TIVO-3 trial of tivozanib in third-line refractory renal cell carcinoma and, if positive, the filing of a new drug application with the FDA seeking marketing approval of tivozanib in the United States. In addition, during this time we also expect to report the phase 2 portion of the TiNivo combination trial with nivolumab.”

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