Achaogen, Inc. Enters into A Waiver and First Amendment to the Loan and Security Agreement
April 18, 2019 at 05:01 pm EDT
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On April 12, 2019, Achaogen, Inc. entered into a Waiver and First Amendment (the Amendment) to the Loan and Security Agreement by and between the Company and Silicon Valley Bank (SVB) dated February 26, 2018 (the Loan Agreement). Among other things, the Amendment provided for the following: Repayment by the Company of the outstanding balance of its existing Term A loan facility and Term B loan facility in an amount sufficient to reduce the aggregate outstanding balance to $15.0 million; Waiver by SVB of the final payment on the Term A loan facility equal to 6.0% of the original principal amount of the Term A loan facility; Waiver by SVB of all prepayment premiums under the Loan Agreement; A binding commitment by SVB to provide up to $25.0 million in debtor in possession financing in connection with the Company’s filing of a voluntary petition for bankruptcy protection under Chapter 11 of Title 11 of the United States Bankruptcy Code (the ‘Petition’); Consent by SVB to the Company’s use of SVB’s cash collateral to pay certain expenses in preparation for the filing of the Petition; An increase in the floating per annum interest rate on the Term A loan facility and Term B loan facility to 5.50% above the prime rate; Entry by the Company and SVB into an Intellectual Property Security Agreement dated April 12, 2019 granting SVB a security interest in all of the Company’s right, title and interest in, to and under its intellectual property including, without limitation, the Company’s copyrights, trade secrets, trademarks, patents and mask works; and Customary representations and warranties.
Achaogen, Inc. is a late-stage biopharmaceutical company. The Company is engaged in the discovery, development and commercialization of antibacterial treatments against multi-drug resistant (MDR) gram-negative infections. The Company is involved in researching and developing plazomicin, its lead product candidate, for the treatment of serious bacterial infections, including complicated urinary tract infection (cUTI), blood stream infections and other infections due to MDR Enterobacteriaceae, including carbapenem-resistant Enterobacteriaceae (CRE). Plazomicin is an intravenous aminoglycoside antibiotic. The Company has developed plazomicin by chemically modifying sisomicin, a naturally occurring aminoglycoside, in order to overcome common aminoglycoside resistance mechanisms. The Company has a portfolio of small molecule and antibody programs. The Company's Early Development programs include C-Scape and LpxC.