Altimmune drew an additional $10 million under its loan facility with Hercules Capital and other lenders after meeting clinical and financial milestones. The borrowing adds to the company’s debt and extends the period before scheduled principal repayments begin.
- New borrowing: The $10 million draw was made on October 27 under a loan facility with up to $125 million in aggregate principal. The facility’s total size is not the same as the amount borrowed; the announcement does not state the total outstanding balance after this draw.
- Repayment timing: The interest-only period and the date when amortization begins have both been extended to June 1, 2028.
- Minimum cash requirement: Altimmune must maintain “Qualified Cash” equal to at least 60% of the outstanding principal of its term-loan advances.
- Fees: A 1% facility charge was deducted from the $10 million funding. The end-of-term charge remains 6.25% of the amounts funded.
The draw provides Altimmune with additional financing, while the revised terms defer scheduled principal repayment until June 2028. The cash covenant also limits how far the company’s qualifying cash balance can fall relative to its loan principal.