Item 1.01. Entry into a Material Definitive Agreement.
On December 22, 2021, Syndax Pharmaceuticals, Inc. (the "Company") entered into
Amendment No. 1 to the Company's Loan and Security Agreement (the "First
Amendment") with the several banks and financial institutions or entities from
time-to-time party thereto (collectively, the "Lender") and Hercules Capital,
Inc., in its capacity as administrative agent for itself and the Lender (in such
capacity, the "Agent"). The First Amendment amended that certain Loan and
Security Agreement dated as of February 7, 2020 (the "Existing Loan Agreement,"
as amended by the First Amendment, the "Loan Agreement") among the Borrower, the
Lender and the Agent.
The First Amendment increases the amount that the Company may borrow by $50.0
million, from up to $30.0 million to up to $80.0 million, in multiple
tranches. The First Amendment increases the second tranche ("Tranche 2") from
$10.0 million to $30.0 million with $15.0 million being available at the
Company's option through April 30, 2022 and another $15.0 million being
available at the Company's option through November 30, 2022, which availability
period will be extended to April 30, 2023 if the first $15.0 million is drawn
prior to April 30, 2022. The First Amendment also provides for a third tranche
of $30.0 million ("Tranche 3"), which is available, subject to the Agent's
investment committee approval, through the Interest-Only Period (as defined
below). The Company's only borrowings to date under the Loan Agreement are the
first tranche of $20.0 million, which the Company drew upon the closing of the
Loan Agreement on February 7, 2020.
Additionally, the First Amendment, among other things, (i) extended the
expiration of the period in which interest-only payments on borrowings under the
Loan Agreement are required from October 1, 2021 to January 1, 2023, which is
further extendable to December 31, 2023 upon the partial or full draw of Tranche
2 (the "Interest-Only Period"), (ii) extended the maturity date of Loan
Agreement from September 1, 2023 to April 1, 2024, (iii) decreased the annual
interest rate from the greater of (w) 9.85% or (x) 5.10% plus the Wall Street
Journal prime rate to the greater of (y) 9.25% or (z) 6.00% plus the Wall Street
Journal prime rate, (iv) applies a facility charge equal to 0.50% of any future
draws, (v) applies a 4.99% end of term charge to any future draws payable on the
maturity date, (vi) permits the entry into the Collaboration and License
Agreement as previously disclosed with Incyte Corporation, and (vii) adds a
minimum cash covenant applicable on the occurrence of certain events. The First
Amendment also resets the prepayment premium requirements as of the date of the
First Amendment so that any prepayments are subject to a prepayment premium
equal to (i) 2.0% of the principal amount outstanding if the prepayment occurs
during the first year following the Loan Amendment, (ii) 1.5% of the principal
amount outstanding if the prepayment occurs during the second year following the
Loan Amendment, and (iii) 1.0% of the principal amount outstanding at any time
thereafter but prior to the Maturity Date.
The foregoing description of the First Amendment contained herein does not
purport to be complete and is qualified in its entirety by reference to the
First Amendment, a copy of which the Company will file as an exhibit to its
Annual Report on Form 10-K for the year ended December 31, 2021.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet
Arrangement of a Registrant.
The information in Item 1.01 above relating to the Loan Agreement is
incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
No. Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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