Loan & DebtMay 6, 2026, 04:09 PM
Lexicon Secures $100M Loan Facility; Refinances Debt
AI Summary
Lexicon Pharmaceuticals entered into a loan and security agreement with Hercules Capital, Inc. for up to $100 million, available in three tranches maturing in May 2030. The initial $55 million tranche was funded at closing and will be used to repay an existing loan facility with Oxford Finance. This new facility provides greater financial flexibility and supports upcoming regulatory and commercial milestones, with additional tranches contingent on clinical and regulatory achievements for sotagliflozin.
Key Highlights
- Secured a loan facility of up to $100 million from Hercules Capital.
- Initial $55 million tranche funded at closing to repay existing Oxford Finance loan.
- Second $20 million tranche available upon achieving Tranche 2 Milestones, including FDA approval for sotagliflozin.
- Third $25 million tranche available at Lexicon's option, subject to Hercules' consent.
- Loan matures in May 2030, with an initial 18-month interest-only period extendable to 30 months.
- Interest rate is floating, prime plus 3.10%, with a floor of 9.85%.
- Granted Hercules warrants to purchase 691,823 shares at $1.59 per share for the first tranche.
- Obligations are secured by a first lien on all of Lexicon's assets.