secwatch.observer — SEC 8-K summary
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Issuer:     Arcus Biosciences, Inc. (RCUS)
CIK:        0001724521
Form:       8-K
Filed at:   2024-08-27T23:59:59+00:00
Accession:  0001724521-24-000144
Event type: debt
Sentiment:  neutral
Materiality: 0.70
Item codes: 1.01, 2.03
LLM model:  deepseek-v4-flash:cloud@v2

Arcus Biosciences secures up to $250M term loan facility from Hercules Capital; initial $50M funded
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- Initial $50M funded; additional $50M available at company's option through Jun 2025 and another $50M through Mar 2026; final $100M at lenders' option.
- Interest rate = greater of Prime Rate + 1.95% or 10.45% p.a.; interest-only payments until Sep 2028, extendable 12 months if FDA approves BLA/NDA.
- Loans mature Sep 2029, extendable 12 months upon two of three milestones: phase 3 starts for casdatifan, quemliclustat, or etrumadenant.
- Covenant: if mkt cap ≤ $1.2B, maintain Qualified Cash ≥ 50% of outstanding principal; threshold reduces to 40% or 35% upon milestones.
- Prepayment premium 3% (yr1), 2% (yr2), 1% (thereafter); end-of-term charge 7.75%.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1724521/000172452124000144/0001724521-24-000144-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1724521/000172452124000144/rcus-20240827.htm
  HTML page:      https://secwatch.observer/filing/0001724521-24-000144

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