Omega Therapeutics, Inc. and Pacific Western Bank Enters into the Fourth Amendment to the Loan and Security Agreement
December 21, 2021 at 04:01 pm EST
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On December 20, 2021, Omega Therapeutics, Inc. and Pacific Western Bank entered into the Fourth Amendment to the Loan and Security Agreement, dated as of March 9, 2018, and as amended on September 30, 2019, January 22, 2020 and December 30, 2020. The Amendment, among other things, provides for an additional tranche to the term loan facility in an aggregate principal amount of $20.0 million. Pursuant to the Amendment, the Tranche IV Term Loan bears interest at a floating annual rate equal to the greater of 0.50% above the Prime Rate then in effect and 5.50%. The Loan Agreement matures on September 30, 2025. Borrowings under the Loan Agreement are collateralized by substantially of the Companys personal property, other than intellectual property. There are no financial covenants associated with the Amendment, but the Company is subject to certain affirmative and negative covenants until maturity. The proceeds of the Tranche IV Term Loan will first be applied to the repayment in full of all outstanding and accrued interest pursuant to the currently outstanding term loans, and the balance will be disbursed to the Company and used for general working capital purposes, and for capital expenditures.
Omega Therapeutics, Inc. is a clinical-stage biotechnology company, which is engaged in the development of a programmable epigenomic mRNA medicine to treat or cure a broad range of diseases. The Companyâs OMEGA platform has enabled it to identify and validate various DNA-sequence-based epigenomic, zip codes, associated with individual regulatory elements within Insulated Genomic Domains (IGDs). The Company designs and engineers its mRNA therapeutics, called epigenomic controllers, or ECs, to target EpiZips for precision epigenomic control. Its pipeline consists of programs that span oncology, regenerative medicine, and multigenic diseases including immunologic and cardiometabolic conditions. The Companyâs precision epigenomic control delivered by the OMEGA platform has therapeutic applicability and transformational potential, spanning across oncology, multigenic diseases including immunologic and cardiometabolic conditions, and regenerative medicine.