TScan Therapeutics Refinances Existing Debt Facility with Silicon Valley Bank

TScan Therapeutics, Inc. (Nasdaq: TCRX) recently announced a significant financial move aimed at strengthening its liquidity position. On December 20, 2024, the company entered into a Loan and Security Agreement with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, for a term loan facility of up to $52.5 million. This agreement includes two tranches, with the first tranche of $32.5 million having been fully funded on the Effective Date.

The purpose of the Term A Loan Advance, funded from this facility, was to refinance all outstanding obligations under the Company’s pre-existing Loan and Security Agreement. Additionally, the remaining funds will be allocated towards general corporate purposes. The agreements stipulate that the term loans have a maturity date of September 1, 2029, with monthly interest payments specified until specified milestones are achieved.

In the event that the financial and clinical milestones are not met by June 30, 2026, certain amendments to the payment terms will be in effect, extending the maturity date and altering the interest-only period accordingly. The interest rate applicable to the loans will be the greater of 7.00% or the prime rate minus 0.75%, capped at 9.75% per annum.

The New Loan Agreement contains standard provisions such as representations and warranties, events of default, and other covenants. Notably, the Company granted the Lender a first-priority security interest in most of its assets excluding intellectual property. Future direct or indirect subsidiaries will guarantee the Company’s obligations under the agreement.

Concurrently, TScan announced the termination of its prior Loan and Security Agreement dated as of September 9, 2022, with outstanding obligations totaling $17.2 million. The termination involved the repayment of outstanding amounts along with an exit fee and prepayment premium amounting to $2.1 million.

Following the agreements, the Company disclosed the news in a press release on December 23, 2024, highlighting the successful closing of the New Loan Agreement. This press release, filed as Exhibit 99.1 in their Form 8-K submission, does not constitute a filing under the Exchange Act.

TScan Therapeutics’ Chief Financial Officer, Jason A. Amello, expressed satisfaction with the non-dilutive agreement, emphasizing the extended financial flexibility gained through the refinancing. The Company anticipates utilizing these resources to support its operational plans until late 2026. Silicon Valley Bank officials echoed similar sentiments, expressing enthusiasm for the renewed partnership.

This financing move aligns with TScan’s ongoing advancements in developing T cell receptor (TCR)-engineered T cell (TCR-T) therapies for cancer treatment. The Company’s focus on innovative therapies and strategic financial decisions underscores its commitment to enhancing shareholder value and advancing patient care.

The complete terms and conditions of the New Loan Agreement are available for reference in the full filing submitted to the Securities and Exchange Commission. Investors and stakeholders eagerly await further developments as TScan Therapeutics propels forward with its research and developmental objectives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read TScan Therapeutics’s 8K filing here.

TScan Therapeutics Company Profile

TScan Therapeutics, Inc, a clinical-stage biopharmaceutical company, develops T cell receptor-engineered T cell (TCR-T) therapies for the treatment of patients with cancer in the United States. The company's lead product candidates include TSC-100 and TSC-101 that is in Phase I clinical trial for the treatment of patients with hematologic malignancies to eliminate residual disease and prevent relapse after allogeneic hematopoietic cell transplantation.