Phathom Pharmaceuticals Announced Amendment To Its Term Loan Facility From Hercules Capital; Increases Total Term Loan Facility Up To $300M With Favorable Terms, Including Extension From Oct. 1, 2026, To Dec. 1, 2027
Portfolio Pulse from Benzinga Newsdesk
Phathom Pharmaceuticals has amended its term loan facility with Hercules Capital, increasing the total loan facility to up to $300 million. The amendment includes favorable terms such as an extension of the maturity date from October 1, 2026, to December 1, 2027. Phathom has already drawn $40 million from the amended facility, bringing the total outstanding to $140 million. The company estimates that the amended terms will result in approximately $20 million in cash savings based on the original maturity date and assuming $200 million in advances.
December 14, 2023 | 1:04 pm
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Hercules Capital has amended the terms of its loan facility with Phathom Pharmaceuticals, which may reflect positively on its portfolio management and risk assessment capabilities.
As the lender, Hercules Capital's decision to amend the loan terms with Phathom Pharmaceuticals could be seen as a strategic move to support a borrower while also potentially securing a more favorable return on investment. This may be perceived positively by investors who value proactive portfolio management and could have a modest positive impact on Hercules Capital's stock in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Phathom Pharmaceuticals has secured an increased and extended term loan facility, which is likely to improve its financial flexibility and reduce near-term cash outflows.
The amendment of the loan terms is directly related to Phathom Pharmaceuticals and is likely to be viewed positively by investors as it provides the company with additional capital and more favorable repayment terms. This could lead to an improved short-term outlook for the company's stock as it suggests increased financial stability and reduced cash flow pressure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100