Hercules Capital (NYSE: HTGC) has provided a senior secured term loan facility of up to $200m to Boston-based Atea Pharmaceuticals (Nasdaq: AVIR), a late-stage clinical biopharmaceutical company focused on oral antiviral therapeutics for serious viral diseases, under a loan and security agreement dated 6 November 2026.
Atea drew $65m at closing under the first tranche. A further $35m is available under a second tranche tied to successful completion of the ongoing Phase 3 BEM/RZR trial by a specified date in the second half of 2027.
Tranches three and four provide up to $70m subject to regulatory, financing and commercial milestones. A fifth tranche of up to $30m is available at the lenders’ sole discretion.
The term loan matures on 1 November 2031. It has a 48-month interest-only period, extendable to maturity on a specified commercial milestone.
Pricing is floating at the greater of WSJ prime plus 2.35% and 9.35%, payable monthly in arrears. The agreement includes a $650,000 initial upfront fee, a 1.00% fee on advances under tranches two to five, and an end-of-term charge on prepayment, maturity or acceleration.
The debt is secured by substantially all of Atea’s assets, including intellectual property. No equity warrants to Hercules were disclosed in the Form 8-K or loan and security agreement.
Atea had $219.5m of cash and investments as of 30 June 2026. With the initial $65m draw, the company expects to be funded into mid-2028, with further draws potentially extending runway toward profitability if BEM/RZR launches successfully in the US.
Proceeds are intended to expand commercial-related activities ahead of a potential US launch of bemnifosbuvir/ruzasvir, or BEM/RZR, for chronic HCV if approved, and to advance Atea’s HEV clinical program.
The company reported positive Phase 3 C-BEYOND topline results in North America, expects C-FORWARD topline data in early Q1 2027, plans an NDA submission in mid-2027, and is targeting a potential US launch in 2028.
Jean-Pierre Sommadossi, PhD, CEO and Founder of Atea, said: "This non-dilutive financing enhances our financial flexibility, while preserving a disciplined approach to capital deployment, allowing us to access capital in alignment with our progress toward our goal of product launch of BEM/RZR in the US in 2028 and a path toward profitability."
R. Bryan Jadot, Senior Managing Director and Group Head of Life Sciences at Hercules Capital, said: "Atea is approaching several important clinical and regulatory milestones led by its global Phase 3 HCV program. We are pleased to provide a flexible financing solution that supports the Company’s advancement and its efforts for the potential commercialization of BEM/RZR in the US market."
Morgan Stanley & Co. LLC acted as exclusive financial adviser to Atea. Hercules Capital is a business development company focused on technology and life sciences lending. It had about $6.1bn of assets under management at 30 June 2026 and reported $2.74bn of new debt and equity commitments in the first half of 2026.