Phathom Pharmaceuticals, Inc. (PHAT): debt financing — Phathom Pharma amends loan agreement, boosts facility to $300M, lowers rate

Phathom Pharmaceuticals, Inc.

Fourth Amendment with Hercules Capital increases aggregate loan from $200M to $300M; $40M of Tranche 2 funded at closing.
New tranches 2-6 total up to $160M undrawn; maturity extended from October 2026 to December 2027.
Cash interest reduced from 10.75% to 9.85% (capped at 10.35%); PIK interest cut from 3.35% to 2.15%.
Minimum cash covenant lowered to 20% of outstanding principal; revenue performance covenant starts September 30, 2024.
Revenue covenant waived if cash >50% (later 35%) of outstanding or market cap exceeds $900M.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Phathom Pharmaceuticals, Inc. amended credit facility of increases the aggregate principal amount of the term loans from $200,000,000 to $300,000,000 with Hercules Capital, Inc. at reduces the cash interest rate from 10.75% ... to 9.85% (floating rate based on maturing extends ... the maturity date from October 2026 to December 2027.

Instrument: credit facility
Principal: increases the aggregate principal amount of the term loans from $200,000,000 to $300,000,000
Counterparty: Hercules Capital, Inc.
Rate: reduces the cash interest rate from 10.75% ... to 9.85% (floating rate based on
Maturity: extends ... the maturity date from October 2026 to December 2027
Event: amendment

Exact text from the filing

and the Lenders (the “Loan Agreement”). Amendments to Amount and Interest Rate . The Fourth Amendment, (i) increases the aggregate principal amount of the term loans from $200,000,000 to $300,000,000; (ii) provides for the possibility of accessing the $160 million currently undrawn commitment through five additional tranches referred to as tranches 2 through 6,

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

Phathom Pharmaceuticals, Inc. amended Fourth Amendment to Loan and Security Agreement with Hercules Capital, Inc., as administrative agent, collateral agent and a lender, and the other lenders party thereto valued at increases the aggregate principal amount of the term loans from $200,000,000 to $300,000,000 (effective 2023-12-14).

Action: amendment
Agreement: credit facility
Counterparty: Hercules Capital, Inc., as administrative agent, collateral agent and a lender, and the other lenders party thereto
Value: increases the aggregate principal amount of the term loans from $200,000,000 to $300,000,000
Effective: 2023-12-14

Exact text from the filing

Phathom Pharmaceuticals, Inc. (the “Company”) entered into a Fourth Amendment to Loan and Security Agreement (the “Fourth Amendment”) with Hercules Capital, Inc., in its capacity as administrative agent and collateral agent and as a lender (in such capacity, the “Agent” or “Hercules”) and the other financial institutions that from time to time become parties to the Loan Agreement as lenders (collectively, the “Lenders”).

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Phathom Pharmaceuticals, Inc. filing history →

Source: SEC EDGAR

accession 0001193125-23-294942

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