Arcus Biosciences Enters New Credit Agreement
Ticker: RCUS · Form: 8-K · Filed: Aug 27, 2024 · CIK: 1724521
Sentiment: neutral
Topics: debt-financing, credit-agreement, material-definitive-agreement
TL;DR
Arcus just took on new debt via a credit agreement.
AI Summary
On August 27, 2024, Arcus Biosciences, Inc. entered into a material definitive agreement, specifically a credit agreement with certain lenders. This agreement creates a direct financial obligation for the company, indicating it has taken on new debt.
Why It Matters
This filing indicates Arcus Biosciences has secured new financing, which could impact its operational capacity and future investment plans.
Risk Assessment
Risk Level: medium — Taking on new debt can increase financial leverage and obligations, potentially impacting the company's financial flexibility.
Key Players & Entities
- Arcus Biosciences, Inc. (company) — Registrant
- August 27, 2024 (date) — Date of Report
- Delaware (jurisdiction) — State of Incorporation
- 3928 Point Eden Way (address) — Principal Executive Offices
- Hayward, California (location) — City, State of Principal Executive Offices
- 94545 (zip_code) — Zip Code of Principal Executive Offices
- (510) 694-6200 (phone_number) — Registrant's Telephone Number
FAQ
What type of material definitive agreement did Arcus Biosciences enter into?
Arcus Biosciences entered into a credit agreement with certain lenders.
What is the date of the earliest event reported in this filing?
The date of the earliest event reported is August 27, 2024.
What is the principal executive office address of Arcus Biosciences?
The principal executive office address is 3928 Point Eden Way, Hayward, California, 94545.
Under which section of the Securities Exchange Act of 1934 is this report filed?
This report is filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
What is the IRS Employer Identification Number for Arcus Biosciences?
The IRS Employer Identification Number for Arcus Biosciences is 47-3898435.
Filing Stats: 1,366 words · 5 min read · ~5 pages · Grade level 12.3 · Accepted 2024-08-27 16:12:21
Key Financial Figures
- $0.0001 — ch registered Common Stock, Par Value $0.0001 Per Share RCUS The New York Stock Excha
- $250.0 million — s a secured term loan facility of up to $250.0 million (collectively, the " Term Loans "), con
- $50.0 million — Loans "), consisting of: (a) an initial $50.0 million tranche of term loans, which was funded
- $100.0 million — of term loans in an aggregate amount of $100.0 million (the " Final Tranche "), which will be
- $25.0 million — t to customary terms and conditions, in $25.0 million increments. On the Closing Date, the Co
- $1.125 million — harge for the Initial Tranches equal to $1.125 million. Borrowings under the LSA bear interes
- $1.20 b — 's market capitalization is at or below $1.20 billion, "Qualified Cash" (defined as cas
Filing Documents
- rcus-20240827.htm (8-K) — 35KB
- 0001724521-24-000144.txt ( ) — 157KB
- rcus-20240827.xsd (EX-101.SCH) — 2KB
- rcus-20240827_lab.xml (EX-101.LAB) — 21KB
- rcus-20240827_pre.xml (EX-101.PRE) — 12KB
- rcus-20240827_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. On August 27, 2024 (the " Closing Date "), Arcus Biosciences, Inc. (the " Company ") entered into a Loan and Security Agreement (the " LSA "), by and among the Company, the several banks and other financial institutions or entities party thereto, as lenders, and Hercules Capital, Inc. (" Hercules "), as administrative agent and collateral agent. The LSA provides a secured term loan facility of up to $250.0 million (collectively, the " Term Loans "), consisting of: (a) an initial $50.0 million tranche of term loans, which was funded on the Closing Date; (b) an additional tranche of term loans in an aggregate amount of $50.0 million that is available at the Company's sole option, subject to customary terms and conditions, through June 15, 2025; (c) an additional tranche of term loans in an aggregate amount of $50.0 million that is available at the Company's sole option, subject to customary terms and conditions, through March 15, 2026 (the amounts listed in (a), (b) and (c) above, the " Initial Tranches ") and (d) an additional tranche of term loans in an aggregate amount of $100.0 million (the " Final Tranche "), which will be available at the lenders' sole option, subject to customary terms and conditions, in $25.0 million increments. On the Closing Date, the Company paid an initial facility charge for the Initial Tranches equal to $1.125 million. Borrowings under the LSA bear interest at a per annum rate equal to: (a) in cash, the greater of either (i) the Prime Rate (as reported in the Wall Street Journal) plus 1.95% and (ii) 10.45%. The Term Loans are repayable in monthly interest-only payments until September 1, 2028 (the " Interest-Only Payment Period "). The Company may extend the Interest-Only Payment Period an additional 12 months if (i) no default or event of default exists under the LSA and (ii) by August 27, 2028, the U.S. Food and Drug Administration has approved either a Biologics License Applicat
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARCUS BIOSCIENCES, INC. Date: August 27, 2024 By: /s/ Terry Rosen, Ph. D. Terry Rosen, Ph.D. Chief Executive Officer (Principal Executive Officer)