Altimmune, Inc. announced that it expects to receive $100 million in funding from Hercules Capital, Inc.

Published: 2025-05-13 11:36:45 ET ALT

Published on 05/13/2025 at 11:36

Altimmune, Inc. announced that it has entered into a Loan and Security Agreement with Hercules Capital, Inc. and the lenders party thereto, pursuant to which the lenders will make available up to four tranches of term loans in an aggregate principal amount of $100,000,000 on May 13, 2025. The first Term Loan tranche was made on the Closing Date in an aggregate principal amount of $15,000,000. Upon the achievement of certain milestones and subject to other terms and conditions set out in the Loan Agreement, the second Term Loan tranche will be made available in an aggregate principal amount of up to $25,000,000 and the third Term Loan tranche will be made available in an aggregate principal amount of up to $15,000,000.

The fourth Term Loan tranche will be made available in an aggregate principal amount of up to $45,000,000 subject to the approval of the lenders. The Term Loan will mature on June 1, 2029. The Term Loan bears interest equal to the greater of a the prime rate as reported in The Wall Street Journal plus 2.45% and 9.95% until December 31, 2025, and 9.45% thereafter.

The Loan Agreement provides for an end of term charge equal to 6.25% of the funded loan amount, due at the earlier of prepayment or maturity. Pro-rata payment of any earned end of term charge will be due upon any partial prepayment. In addition, the Loan Agreement requires the Company to pay a facility charge of 1.0% of the Term Loan funded due at the Closing Date and of each subsequent Term Loan tranche at the time such tranche is funded.

The Loan Agreement is for 48 months, with interest-only payments for an initial period of up to 24 months from the Closing Date, which may be extended up to 42 months upon achievement of certain milestones and subject to other terms and conditions set out in the Loan Agreement.