Finch Therapeutics prepays $16.2M to Hercules Capital, terminates loan agreement

Finch Therapeutics Group, Inc.

On Jan 25, 2023, prepaid $16.2M aggregate, including $330K prepayment charge (2.2%) and $825K end-of-term fee.
Loan originally provided up to $55M term loan; only $15M was borrowed under the agreement.
All obligations, covenants, and liabilities under the Loan Agreement discharged and agreement terminated.
Interest rate was variable (Prime plus 4.05%, floor 7.55%); interest-only period was through Dec 2024.
Prepayment uses cash; reduces debt but drains liquidity for Finch Therapeutics (FNCH).

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Finch Therapeutics Group, Inc. terminated Loan and Security Agreement with Hercules Capital, Inc. as administrative agent and collateral agent for the Lenders valued at $16.2 million (effective 2023-01-25).

Action: termination
Agreement: credit facility
Counterparty: Hercules Capital, Inc. as administrative agent and collateral agent for the Lenders
Value: $16.2 million
Effective: 2023-01-25

Exact text from the filing

On January 25, 2023, Finch Therapeutics Group, Inc. (the “Company”) provided notice of its intention to voluntarily prepay all outstanding principal, accrued and unpaid interest, fees, costs and expenses, equal to $16.2 million in the aggregate (the “Payoff Amount”), under the Loan and Security Agreement (the “Loan Agreement”), dated as of May 11, 2022, by and among the Company and each of its subsidiaries, the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (collectively, the “Lenders”), and Hercules Capital, Inc., in its capacity as administrative agent and collateral agent for itself and the Lenders.

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Finch Therapeutics Group, Inc. filing history →

Source: SEC EDGAR

accession 0000950170-23-001236

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