MERSANA THERAPEUTICS, INC. : entering into a material definitive agreement, terminating a material definitive agreement, creating a direct financial obligation or obligation under an off-balance sheet arrangement of a holder (Form 8-K)
Article 1.01. The conclusion of an important definitive agreement.
Loan and Security Agreement
The term loans bear interest at a variable rate equal to the greater of (i) 8.50% and (ii) the prime rate plus 5.25%. The loan agreement provides for interest payments only up to
The Company paid a facility fee of
As part of its conclusion of the Loan Agreement, the Company granted the Agent a security interest over substantially all of the Company’s personal property held or subsequently acquired, excluding intellectual property (but including the right to payments and the proceeds of intellectual property), and a negative pledge on intellectual property. The loan agreement also contains customary representations and warranties and positive and negative covenants, as well as customary events of default. Some of the usual covenants limit the ability of the Company and its subsidiaries, among others, to incur future debts, grant liens, make investments, make acquisitions, distribute dividends, make certain restricted payments. and to sell assets, subject in each case to certain exceptions. Failure by the Company to comply with these covenants would result in an event of default under the loan agreement and could result in the acceleration of obligations owed under the loan agreement.
The foregoing description of the Loan Agreement is qualified in its entirety by reference to the full text of the Loan Agreement which the Company intends to file as an attachment to its annual report on Form 10-K for the year ending
Article 1.02. Termination of a Material Definitive Agreement.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
The information contained in Section 1.01 of this current report on Form 8-K is incorporated herein by reference.
© Edgar online, source