Fenwick represented Pharmakon, an investor in non-dilutive debt for the life sciences industry and the investment manager of the BioPharma Credit funds, in IP diligence regarding a term loan financing facility for up to $175 million for Immunogen (Nasdaq: IMGN), a leader in the expanding field of antibody-drug conjugates (ADCs) for the treatment of cancer. Proceeds from the agreement will strengthen ImmunoGen's balance sheet and provide the company with additional capital to support its growth trajectory.
Under the terms of the agreement, the loan facility will be available to ImmunoGen in two tranches. The initial tranche of $75 million will be drawn upon execution; the second tranche of $50 million will be available at the company's option upon achievement of positive top-line data from its confirmatory MIRASOL trial and a net sales threshold for ELAHERE™ (mirvetuximab soravtansine-gynx). This tranche may be increased to $100 million upon mutual agreement of the parties. The facility will mature five years from initial funding; payments will be interest-only during the first 36 months, with an extension of 12 months if certain conditions are met, after which ratable principal payments will commence for the remainder of the loan. Interest will accrue at the three-month Secured Overnight Financing Rate, subject to a 2.75% floor, plus 8.00% per annum. More information can be obtained from the announcement.
The Fenwick team included corporate partner Eric Shedlosky, and intellectual property partner Dr. Carl Morales and senior associates Dr. Hayan Yoon and Dr. Glenn Foulds.