Phathom Pharmaceuticals announced that it has entered into a loan and Security Agreement with Hercules Capital, Inc. for aggregate principal amount of up to $200 million in funding on September 17, 2021. The company will raise the funding in four tranches. The first tranche consisting of an aggregate principal amount of $100 million. The second tranche consisting of up to $50 million, third tranche consisting of an $25 million, fourth and final tranche consisting of up to $25 million. The loan will mature on October 1, 2026. The term loan bear a variable annual rate equal to the greater of 5.50% and the prime rate plus 2.25%, payment-in-kind interest at a per annum rate of interest equal to 3.35%. The company may make payments of interest only through October 1, 2024, which may be extended to October 1, 2025, upon the achievement of the second performance Milestone prior to September 30, 2024 and the condition that no default or event of default exists, and which is further extendable to October 1, 2026, subject to FDA approval of the company’s New Drug Application. The Loan Agreement contains customary closing fees, prepayment fees and provisions, events of default, and representations, warranties, and covenants, including a financial covenant requiring company to maintain certain levels of cash subject to a control agreement in favor of the Agent. The company will also issue warrant to purchase 74,783 of shares of the Company’s common stock, par value $0.0001 per share, equal to 2.5% of the aggregate amount of the term Loan advances that are funded, as such amounts are funded. On the closing date. The warrant will be exercisable for a period of seven years from the date of issuance at a per-share exercise price equal to $33.43, which was the closing price of the Company’s common stock on September 16, 2021.