Seres therapeutics, inc. entered into loan and security agreement with hercules capital, inc

Effective as of october 29, 2019 (the closing date), seres therapeutics, inc. (the company) entered into a loan and security agreement (the “loan agreement”) with hercules capital, inc. (“hercules”) pursuant to which a term loan in an aggregate principal amount of up to $50.0 million (the “term loan facility”) is available to the company in three tranches, subject to certain terms and conditions. twenty-five million dollars under the first tranche was advanced to the company on the closing date. upon satisfaction of certain milestones, the second tranche is available under the term loan facility which allows the company to borrow an additional amount up to $12.5 million through march 15, 2021. the third tranche, which allows the company to borrow an additional $12.5 million, will be available upon hercules’ approval on or prior to june 30, 2021. advances under the term loan facility will bear interest at a rate equal to the greater of either (i) the prime rate (as reported in the wall street journal) plus 4.40%, and (ii) 9.65%. the company will make interest only payments through december 1, 2021, or extended to june 1, 2022 upon satisfaction of certain milestones, and will then repay the principal balance and interest of the advances in equal monthly installments after the interest only period and continuing through november 1, 2023.
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